“Those who haven’t priced that assumption into
their investment models are going to pay.”
Image Credit: iphonasia.com
A “perfect storm” of events will collide in 2013 and throw the world back to economic crisis, warns New York University economist Nouriel Roubini. The economy will grow but at a sluggish pace, and those who haven’t priced that assumption into their investment models are going to pay.
- “The second half is going to be slightly better than the first half only because the first half was awful.”
- “Every economy in the world trying to push their problems into the future,” Roubini says.
- “We are kicking the can down the road and all of this is going to come to a head in 2013.”
- “I’m in favor of fiscal austerity but you have to not front load it. You have to commit to a medium-term plan. You have to cut spending and raise taxes,” Roubini says.
- “The optimists say we are going to have 3.4 percent to 4 percent growth in the second half of the year. We have not had this growth rate even in the recovery so I can see growth being slightly above 2 percent, or at an average of 2.4 percent, but that means that growth is still below potential,” Roubini says.
- “Unemployment remains high, housing is double dipping and you have the fiscal drag at the state and local governments and at the federal level, the stimulus is going away and QE2 is going away.”
- “The consensus is overly pessimistic.”
Quote Sourced CNBC from Roubini: ‘Perfect Storm’ to Hit Global Economy in 2013