When Nouriel Roubini, Chairman of RGEMonitor.com aka “Dr. Doom” speaks, the market listens.
In a speech last week, Nouriel’s commentsabout the markets were misunderstood, helping the S&P to a 1% rally that morning.
So what does this bearish economist have to say about the markets?
Maria interviewed Nouriel on Closing Bellthis afternoon.
Roubini said we’ll have a V-shaped recovery, seeing growth back to 3%. It’s going to feel like a recession even though we’re technically out of the recession.
Currently, the jobless rate in the U.S. is at 9.5%, Robuini said unemployment rate may hit 11% by the end of the year.
We saw a freefall in the global economy in the fourth quarter (of last year) and first quarter. Roubini said we’re no longer in that freefall and we’re closer to a bottom. We’re not going to have L-shape depression. But between a L-shape depression and V-shape recovery, Roubini’s view is “it’s a sluggish U-shaped recovery but may go into a W double-dip, if we don’t fix the fiscal and problems in the economy.”