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Monday, July 23, 2012

US Economy Going from Bad to Worse: Roubini

Nouriel Roubini - World Economic Forum Annual ...
Nouriel Roubini - World Economic Forum Annual Meeting 2012 (Photo credit: World Economic Forum)
A robust and self-sustaining U.S. recovery is not on the cards, and we should now expect below trend growth for many years to come, according to Nouriel Roubini, the economist famed for his bearish views. Roubini, best-known for calling the 2008 economic crisis, outlined five reasons the bulls have been wrong and argued that an American economic cold will lead the rest of the world to catch pneumonia in a post on the Project Syndicate website.
“Even this year, the consensus got it wrong, expecting a recovery to annual GDP growth[cnbc explains] of better than 3 percent,” the founder of Roubini Global Economics wrote. “And now, after getting the first half of 2012 wrong, many are repeating the fairy tale that a combination of lower oil prices, rising auto sales, recovering house prices, and a resurgence of U.S. manufacturing will boost growth in the second half of the year and fuel above-potential growth by 2013.”
Roubini believes the U.S. economy will slow further this year and next as expectations of the “fiscal cliff” keep spending and growth lower — and uncertainty about the outcome of the presidential election dogs markets. ... Continue to read.
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