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Counterpoint: Roubini Forecast Missing Something

A few top pros are telling us to take Nouriel Roubini’s Europe forecast with a grain of salt. They say he’s missing something kinda' important.

Roubini, also known as Dr. Doom for his bearish tone, made headlines on Tuesday after an interview on CNBC in which he outlined the potential of a perfect storm for markets in 2013. It included a crumbling eurozone.

Roubini outlined a number of catalysts, but out of all of them, top money managers Pierre LaGrange of GLG Partners, Rick Rieder of BlackRock and Anthony Scaramucci of Skybridge all winced at his comments about Spain.

Roubini said, “By the end of the year Spain (could) need a bailout. That would keep them out of the markets for a year or two. Then maybe two years down the line there would be a restructuring of the debt. That ends with a debt problem. That destroys the competitiveness. And eventually even Spain could exit the Eurozone.”

But top hedge fund manager Rick Reider says that Roubini's outlook assumes that Spain, the EU and the world at large all fail to learn anything from the current woes and the mistakes of smaller nations.

A lot of other outcomes are possible, says Reider. “A whole lot of other things could happen. Spain has tremendous liquidity - I would anticipate in Spain, we’ll see proactive movement,” before it gets that dire.

The pros were also rankled by Roubini's concerns about Italy - another nation that he says has the potential to find itself in crisis.

“Italy is a wealthy nation,” reminds Reider. “There are revenue accretive things they can do to deal with a crisis.”

“The average savings per Italian is higher than average savings of a German,” adds Lagrange. “Most people don’t know that.”

What should you make of all the points and counterpoints?

For the average investor Anthony Scaramucci says the takeaway is really quite simple.

“Nouriel provides a great counter balance to the bulls. What we do at Skybridge is take the bear case and bull case and then we synthesize it.”


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Trader disclosure: On May 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long BAC; Anthony Scaramucci is long GS; Anthony Scaramucci is long IBM; Anthony Scaramucci is long PEP; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long MS CALLS; Pete Najarian is long INTC; Pete Najarian is long INTC CALLS; Pete Najarian is long YHOO; Pete Najarian is long SBUX; Pete Najarian is long SBUX CALLS; Pete Najarian is long PEP


CNBC.com with wires.