Roubini Bloomberg Interview: U.S. in Throes of Economic Contraction
By Liza Horowitz and Matt Winkler
Most advanced economies are lapsing back into recession while the U.S. is already in the throes of an economic contraction, according to Nouriel Roubini, co- founder and chairman of Roubini Global Economics LLC.
“The way I see the global economy, I think we’re entering into a recession again in most advanced economies,” Roubini said in a panel discussion today at the Bloomberg Dealmakers Summit in New York. “I think we’re already into one in the U.S. based on the hard and soft data — same with most of the euro zone, same with the United Kingdom.”
The Conference Board today said that confidence among U.S. consumers stagnated in September near a two-year low as the share of households saying it was difficult to find a job climbed to the highest level in almost three decades. European leaders over the weekend faced pressure at the annual meetings of the International Monetary Fund to solve a debt crisis already spilling over into other parts of the world.
“At this point, the issue is not whether there is going to be a recession or a double-dip but whether it’s going to be relatively mild or whether it’s going to be a severe recession and a global financial crisis,” Roubini said. “The answer to that question depends on what’s going to happen in the euro zone and whether they can get their act together.”
“We are running out of policy bullets,” said Roubini, a professor at New York University’s Stern School of Business. The debt crisis in Europe could have consequences that are “worse” than the collapse of Lehman Brothers Holdings Inc. in 2008.
Roubini predicted the bubble in U.S. housing prices before the market peaked in 2006. His forecasts haven’t all been accurate. When the Standard & Poor’s 500 Index fell to a 12-year low on March 9, 2009, he said it probably would drop to 600 or lower by the end of that year. Instead, the U.S. equity benchmark gained 65 percent for the rest of 2009.
Speaking at the same panel, billionaire Wilbur Ross, chairman of private-equity firm WL Ross & Co., said that Ireland will likely be the first country to recover from the debt crisis.
“The reason why I like Ireland is because unlike what I call the Club Med countries it doesn’t need reforming,” he said. “My leading indicator for Ireland is pub sales.”
“Club Med” countries is a term occasionally used to refer to nations in southern Europe.
European banks are “extremely dependent on the wholesale funding markets, in plain English, hot money,” Ross said. “That’s what makes them vulnerable.”
Sept. 27 (Bloomberg) — Paul Parker, global head of mergers and acquisitions at Barclays Capital, Wilbur Ross, chairman of WL Ross & Co. LLC, and Nouriel Roubini, chairman of Roubini Global Economics LLC, participate in a panel discussion on the outlook for corporate mergers and acquisitions. Matthew Winkler, editor-in-chief of Bloomberg News, moderates. The panel is part of the Bloomberg Link Dealmakers Summit in New York. (Source: Bloomberg)
17 Responses to “Roubini Bloomberg Interview: U.S. in Throes of Economic Contraction”
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Thats pretty much all thats being said here, right? The same old crap?
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Why doesnt CC just play LF?
We got calculators in high school. In Jr. High we had them to but they were forbidden unless the teach said so. Anytime before that was all just learning how to do everything by hand. It is only when you start getting into Math Pure 10-31 that you realize you couldnt possible do it all by hand. You would maybe get through one question per class! Then there is university math. That is the real hard stuff.Maybe some school systems are different but in Canada they taught me how to count. I think those kids that cant count the cash register are probably just lazy, like most of societies youngsters today. It is pretty easy to give people change. But when you mention this it makes me really worry about the education children are getting. School shouldnt be something parents drop you off at just so they dont have to deal with you all day. It should actually be useful. To expect a child to spend 8 hours a day in a school and then come home with mountains of homework is pretty much asking the kid to fail. I know if I was given home assignments after my 9 hour work day I would tell my bosses to go stuff themselves. Home schooling only requires something like 5 hour days, whereas you could spend that other 3 hours teaching the kid something useful about life. Like how to do the laundry, cook, tend the garden, whatever. I intend to homeschool my children. Teach them useful things with that spare time. Prepare them for real life. That is something public schooling never taught me.
This is Pankaj Kumar. The cinematographer for Manjha. I have come pretty late in this discussion. I was particularly amused by Jeet Menons comment, who thought Manjha recieved huge funds to be made.
Quick question – Are you just “playing” each game once or are you going to run multiple sims and then take the consensus?
I think Phil Brown is an arrogant,Tanned Toss Pot.Since he humiliated his players by making them sit in the centre circle for an ear bashing and humiliation it has been on a downward slide since then.I have nothing against Hull,Just the Twat that is PB.
Congress does not want it for themselves then why force it on the people of this Nation. If you are not a productive citizen you might as well kiss yourself goodbye. You are born with a medical problem you will not make it far. If you get MD or something later, sorry about your luck. And if the government thinks you are living to long time for counseling to see if you are fit to keep on living. This Health Care Reform is another way for big government to control. Do not be fooled, people with socialized healthcare come to America for treatment because they can not get it at home.
Heh, no I agree with the point of the article (and posted it to my own blog and facebook, and having conversations about things over there) it is just that this story was made up, so not true in the sense that Mr. Ellis was either lying, or assumed his readers would know that he could not possibly have talked to Davy Crockett (except in a cemetary).