"I would say that the risk of a double-dip recession is highest in the euro zone… I would say there is a more than 50 percent probability," if not of a technical double-dip then of economic stagnation in the area, Roubini said.
"The downside risk to growth is significant so taking stimulus away now is a huge mistake," he warned.
Spain "is worse in some ways," according to Roubini, because unemployment there has reached 20 percent, not 10 percent like in Greece, the country's housing bubble has burst and it is one of the top four economies in the euro zone. A Spanish breakdown would be "a disaster," he said.
"Markets are now realizing that this is going to be a period of slow economic growth. I'm not doom and gloom, I'm talking about slow economic growth over the next 3 years," Roubini, who has been nicknamed "Dr. Doom," said.
No comments:
Post a Comment