Dr. Doom Is Gloomy About the Yen
Nouriel Roubini, the economist at New York University's Stern School of Business who gained renown for predicting the financial crisis, sees dark days ahead for the yen.
Japan's crisis will necessitate a massive reconstruction effort, and financing that will place significant strain on a country where the budget deficit is 10% of GDP and the public debt is reaching 200% of GDP, Roubini told CNBC, and that adds up to bad news for the yen.
Roubini noted that the yen has been been stronger in recent days as investors bank on some repatriation of assets. But over time, he said, "Japan is going to need significant depreciation of the yen to increase its net exports because domestic demand is going to be anemic for a while."
Take a look at the interview.
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