Friday, July 17, 2009

'Dr Doom' says worst of crisis over

I had to read this article twice to make sure that I understood exactly what Dr. Doom Nouriel Roubini was saying. Was he really turning the corner and being somewhat positive? This was – and is- to many - the most pessimistic of all economists throughout this economic crisis. Until now when reading or listening to him I had to take a warm shower just to shake off the chill from his words. This is a huge step for him and all of us should take note.

But what did he really say?

Mr. Roubini said the U.S. is no longer in "free fall" and is likely to recover by the end of the year...and that a recovery wouldn't come until 2010.
WSJ: http://online.wsj.com/article/SB124778518062154527.html

• Pessimistic economist predicted crisis
• Sees "light at the end of the tunnel"
• But jobless to rise, more stimulus needed

"There is light at the end of the tunnel, there is a bottoming out of the US and of the global economy.

"And the light at the end of the tunnel for once is not an incoming train," Dr Roubini told investors at an event in New York.

"In many ways, the worst is behind us in terms of economic and financial conditions."
Stock markets rallied after some news reports quoted Dr Roubini as saying the recession will be over this year and that his economic outlook had improved.

Source: Reuters, July 17, 2009
http://www.news.com.au/business/story/0,27753,25795323-462,00.html

Saverio Manzo

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