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Nouriel Roubini, the economist whose dire forecasts earned him the nickname "Doctor Doom," is now saying that the worst of the economic and financial crisis may be over.
CNBC.com
Nouriel Roubini
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Although Roubini still warned that the US may need a second fiscal stimulus package of up to $250 billion to boost the deteriorating labor market, he also signaled that the crisis may not get any worse, Reuters reported.
Video: Liesman On Roubini Comments
The stimulus "cannot be too small, but it cannot be too large," Roubini said, or financial markets will become too worried about the sustainability of the U.S. debt.
Roubini, of RGE Global Monitor, is one of the few economists who foretold much of the current financial turmoil. But until now, he has remained pessimistic even amid signs that the economy was beginning to turn.
Last month, he told CNBC Europe that the rise in oil prices and interest rates could suppress a budding recovery.
"I see even the risk of a double-dip, W-shaped recession… towards the end of next year," Roubini said. (Click here for story)
"Oil could be closer to $100 a barrel towards the end of this year, this could be a negative shock to the economy," he said, adding that other dangers come from long-term interest rates and big budget deficits.
Because of bad macroeconomic data and poor earnings prospects as companies have weak pricing power and demand is still subdued, the surprises will be on the downside, he told CNBC in June.
"That's why I believe there's going to be a significant market correction for equities, for commodities and even for credit," Roubini added.
He said recovery signs should come from unemployment, housing, industrial production, sales and consumption data.
"When I look at them I see so far still more yellow weeds than green shoots. They have to bottom out, in my view they haven't bottomed out. This recovery, unfortunately, because of the debt overhang… is going to be a very weak economic recovery, in my view," he added.
© 2009 CNBC
Topics:Economic Data * Federal Budget
CNBC.com
Nouriel Roubini
--------------------------------------------------------------------------------
Although Roubini still warned that the US may need a second fiscal stimulus package of up to $250 billion to boost the deteriorating labor market, he also signaled that the crisis may not get any worse, Reuters reported.
Video: Liesman On Roubini Comments
The stimulus "cannot be too small, but it cannot be too large," Roubini said, or financial markets will become too worried about the sustainability of the U.S. debt.
Roubini, of RGE Global Monitor, is one of the few economists who foretold much of the current financial turmoil. But until now, he has remained pessimistic even amid signs that the economy was beginning to turn.
Last month, he told CNBC Europe that the rise in oil prices and interest rates could suppress a budding recovery.
"I see even the risk of a double-dip, W-shaped recession… towards the end of next year," Roubini said. (Click here for story)
"Oil could be closer to $100 a barrel towards the end of this year, this could be a negative shock to the economy," he said, adding that other dangers come from long-term interest rates and big budget deficits.
Because of bad macroeconomic data and poor earnings prospects as companies have weak pricing power and demand is still subdued, the surprises will be on the downside, he told CNBC in June.
"That's why I believe there's going to be a significant market correction for equities, for commodities and even for credit," Roubini added.
He said recovery signs should come from unemployment, housing, industrial production, sales and consumption data.
"When I look at them I see so far still more yellow weeds than green shoots. They have to bottom out, in my view they haven't bottomed out. This recovery, unfortunately, because of the debt overhang… is going to be a very weak economic recovery, in my view," he added.
© 2009 CNBC
Topics:Economic Data * Federal Budget