Roubini: Growth Coming To Standstill
CNBC:
Growth to Halt in Second Half, Reduce Payroll Tax: Roubini
With stimulus programs no longer boosting the economy, growth will come to a standstill for the remainder of 2010 and feel like a return to recession, economist Nouriel Roubini told CNBC.
...The head of Roubini Global Economics said a technical double-dip may not occur but that won't matter. The current consensus of meager gross domestic product growth won't even be matched, and that in itself will provide more trouble for the financial markets, he said.
""It will be a vicious circle because the economy is going to surprise to the downside," Roubini said. "The stock market is going to correct, credit spreads are going to widen. It will be a negative effect on consumption investment, the cost of capital is going to rise. And then you have another shock to the real economy, ending in a vicious cycle in which you can go off a cliff." ...
Growth to Halt in Second Half, Reduce Payroll Tax: Roubini
With stimulus programs no longer boosting the economy, growth will come to a standstill for the remainder of 2010 and feel like a return to recession, economist Nouriel Roubini told CNBC.
...The head of Roubini Global Economics said a technical double-dip may not occur but that won't matter. The current consensus of meager gross domestic product growth won't even be matched, and that in itself will provide more trouble for the financial markets, he said.
""It will be a vicious circle because the economy is going to surprise to the downside," Roubini said. "The stock market is going to correct, credit spreads are going to widen. It will be a negative effect on consumption investment, the cost of capital is going to rise. And then you have another shock to the real economy, ending in a vicious cycle in which you can go off a cliff." ...