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NYU's Roubini: "Nowhere to Hide" from Global Slowdown

Posted Jan 28, 2009 08:44am EST by Tech Ticker in Investing, Newsmakers, Recession, Banking

Nouriel Roubini of NYU’s Stern School of Business is making fresh headlines, as he's forecasting an even more dire outlook for the global economy. In an interview yesterday with Bloomberg News in Zurich, Roubini said:

  • The U.S. will lose 6 million jobs with unemployment reaching at least 9 percent.
  • The U.S. economy will expand 1 percent at most in 2010.
  • Economic growth in China will slow to less than 5 percent.
  • He reiterated his statements that the biggest U.S. banks are insolvent, and that losses could reach $3.6 trillion, far exceeding his original estiamtes.

Is Roubini -- nicknamed "Dr. Doom" for his pessimistic yet accurate forecasts in recent years -- off the mark? We ask colleague and fellow NYU economist Lawrence White. One message from White is clear. Acknowledge losses swiftly or we risk a Japan-like drawn-out recession with no near-term recovery in sight. Yesterday, White and Henry Blodget also discussed:

163 Comments

bill
bill - Wednesday January 28, 2009 08:54AM EST

He is called 'Dr. Doom' for a reason. If the US unemployment is 9% it means at least 91% is still working. The world has grown much more than what was before. So we have some set back! what do you expect? Continuous perpetual growth? His comment is not very helpful in my view.

apppro.net
apppro.net - Wednesday January 28, 2009 08:54AM EST

When are they gong to shur this guy up already. Enough is enough! It seems that he watches the futures and every time there is a chance that the shorts will get screwed over, he comes out with one of his "The World is Going to End!" comments. Basta! No mas!

John
John - Wednesday January 28, 2009 08:55AM EST

Dr. Doom is becoming a big-headed media whore.

Anthony
Anthony - Wednesday January 28, 2009 08:56AM EST

Bank of America, Citi, and JP Morgan should have been let to fail. Those three institutions alone will drag down the U.S. economy for years to come. We will suffer from severe inflationary consequences as a result, all because a bunch of bankers lived the high life for the last 10 years underwriting phony derivative products.

Doug
Doug - Wednesday January 28, 2009 09:00AM EST

roubini needs to shut his pie hole along with all the other wall street negative neds.

aurw
aurw - Wednesday January 28, 2009 09:05AM EST

And our congressmen keep loading pork non-stop.

sj
sj - Wednesday January 28, 2009 09:06AM EST

Mr. Roubini is the only one that tells it how it is. I salute the man. Good job Tech Ticker.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 28, 2009 09:08AM EST

Worst part is none of the bank robbers are in jail! Thain and Maddoff should be sharing a cell. As a honest taxpayer, I am extremely outraged.

Eric
Eric - Wednesday January 28, 2009 09:09AM EST

For all the ripping on Roubini, I'll be the first to say I'd rather have his pessimism rather than blind optimism and false reassurance. Also, I'd add that this man has saved me a whole lot of money, particularly from withdrawals from investments with hedge funds. By the way, Roubini doesn't control the global market. His opinions matter, however, it is a system with powers far beyond even his reaches.

greg
greg - Wednesday January 28, 2009 09:10AM EST

Anybody who was bearish the last two years looks smart... does that mean he knows when its going to turn around?

Peter
Peter - Wednesday January 28, 2009 09:11AM EST

In this CRIME ENFORCEMENT CRISIS: Mr. White... I think Roubini is pretty clear that the 3.6 trillion loss is to U.S banks not "world banks" as you say here. Of course,these losses are ending up as American taxpayer losses. Treasury bailing them out is Phase 2 of the biggest theft in world history. Anyway, this subject is only to be spoken of in reference to CRIME, not economics. We have officially entered the dark ages of human depravity. It's interesting how barbarians like Thain collect fine art. What a contradiction.They wooden the human soul.

aurw
aurw - Wednesday January 28, 2009 09:13AM EST

Oh Great- Let's not talk about it and it will go away. What people need to understand is that wealth is generated at the street level and these people need oxygen. Big bailouts and government programs for spending will not revive the moribund public.

paul j
paul j - Wednesday January 28, 2009 09:13AM EST

america dragged the world down with it's corrupt greed hog corporate psuedo leaders. all else is pure kak. the show is over and i hope it never comes back

Mike
Mike - Wednesday January 28, 2009 09:15AM EST

We'll be able to tell our children about THE GREAT RECESSION we lived through and how we lived.... it's an ideal time to deleverage and invest to be the wealthy of the next generation (welcome to wealth transfer). However not everyone is in that place - some are so buried in debt and too much house they will have to be allowed to fail - and they know it - some will be able to work themselves out of this and will come out the other side better. Choose to be better!

Baldev
Baldev - Wednesday January 28, 2009 09:16AM EST

Mr.Roubini is not doom creator he just point to actions of doom doer's.So the real Dr.Dooms are those stupid fools who are blamming him for their unrealistic and greedy actions. Dr. Roubini pointed to the breakdown of financial fundementals as they were being broken by greed and selfishness.Do not blame messanger.

ann
ann - Wednesday January 28, 2009 09:16AM EST

Mr. Roubini has been warning about this for years. Everyone wants the market to go up forever. Nobody wants to take personal responsibility for their losses.!!. He deserves all the attention he is getting. The only problem was nobody wanted to listen when there was still time to stop this mess. Stop whinning about his statements. If you're so sure he's wrong, go long and shut up.

Sertac I
Sertac I - Wednesday January 28, 2009 09:20AM EST

This man (unfortunately) has most of the times been very accurate in his forecasts.

rodneykingcantwealljustgetalong
rodneykingcantwealljustgetalong - Wednesday January 28, 2009 09:20AM EST

Nouriel Roubini is actually a little bullish if he expects growth at all in the near future. There is still WAAAAYYY too much optimism out there (judging by the bulls posting here) and he isn't even close to being bearish enough for what is coming. The Great Depression will look like the Great Recession compared to what we are going to see. Maybe the Dalaibama will save us all....NOT!!!

Cynthia
Cynthia - Wednesday January 28, 2009 09:20AM EST

the american people are being screwed by all levels of government, by these over paid imbicles in upper managment at all companys. this started more than 20 years ago. remember image is everything crap, it lives today still.

rodneykingcantwealljustgetalong
rodneykingcantwealljustgetalong - Wednesday January 28, 2009 09:21AM EST

Nouriel Roubini is actually a little bullish if he expects growth at all in the near future. There is still WAAAAYYY too much optimism out there (judging by the bulls posting here) and he isn't even close to being bearish enough for what is coming. The Great Depression will look like the Great Recession compared to what we are going to see. Maybe the Dalaibama will save us all....NOT!!!

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