Skip navigation

Current DateTime: 10:50:36 09 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/9/2012 10:51:24 PM

Current DateTime: 10:50:33 09 Feb 2012
LinksList Documentid: 23452000
Expiration DateTime: 2/9/2012 10:51:40 PM

Current DateTime: 10:50:33 09 Feb 2012
LinksList Documentid: 24355697

MOST SHARED


Current DateTime: 10:50:33 09 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/9/2012 10:51:45 PM

MOST POPULAR


Current DateTime: 10:50:38 09 Feb 2012
LinksList Documentid: 35819650
    • Road Warriors

        All the gadgets and gear a savvy frequent traveler needs to navigate the global economy.

HOT ON FACEBOOK

By: CNBC.com | 22 Jun 2009 | 06:21 AM ET
Text Size

The price of oil, which is rising too fast, and long-term interest rates that are beginning to creep up are likely to suppress a budding recovery, famous economist Nouriel Roubini, also dubbed "Dr. Doom," told CNBC Monday.

"I see even the risk of a double-dip, W-shaped recession… towards the end of next year," Roubini told "Squawk Box Europe."

"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.

In the next few months, unemployment may reach 11 percent in the US and around 10 percent in Europe.

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 said.

"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.

The large budget deficits caused by government stimulus packages and bailouts make the work of central banks harder, as they now have to be cautious regarding inflation. 

In Europe, the dangers came both from its weak economy and from exposure of Western European banks to Eastern European economies, he said. But protectionism is not an answer, Roubini warned.

"The reality is that too much protection would be dangerous," he said.

"In Europe there is a risk that even the single market is breaking down because of protectionism, let alone the rest of the world," Roubini added.

— With reporting by Stephane Pedrazzi in Paris. Watch the full Roubini interview above.

© 2011 CNBC.com
Tools:
Add This share icon

CNBC HIGHLIGHTS

  • United States Federal Reserve
  • Many have called to abolish the Federal Reserve. But what would happen if it was dissolved for good?
  • Handing Money Over
  • Entrepreneurs have increasingly been buying back their companies over the last three years.
  • San Francisco
  • Where are the best city locations for singles to take the online dating plunge?
  • Antonio Brown of The Pittsburgh Steelers
  • A Steelers fan spent a week with wide receiver Antonio Brown- and it was all due to tweeting.
  • Floppets Flip Flops
  • Here’s a look at the woman behind the newest collectible toy that kids love.
  • Hopslam Beer
  • Grab a brew—or not—and click ahead to experience the world’s most highly rated beers.


Current DateTime: 11:43:35 09 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 11:56:47 09 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 10:08:28 09 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 01:22:58 09 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters