Roubini Is Now Optimistic on Stocks | NOURIEL ROUBINI BLOG

Thursday, February 7, 2013

Roubini Is Now Optimistic on Stocks

Dr. Doom Nouriel Roubini told CNBC on Tuesday that the "easy money" policy of the Federal Reserve will continue for "as far as the eye can see" and that's going to continue to be good for the U.S. stock market. "When you look at the [mixed] economic data, there's a gap between the fact that the markets, rightly so, are buoyant," he told the network, "because middle of last year central banks had done another massive round of quantitative easing." "Some of the improvement in the markets is not because growth is picking up ... certainly easy money implies asset inflation," Roubini added.There are some positives in the U.S. this year. You have QE, you have housing, you have the shale gas, you have some recovery in jobs in manufacturing," he explained in the interview. "But between the [January] fiscal deal ... and probably 'the sequester,' or something similar, we might have a $300 billion fiscal drag this year.""[The unemployment rate] is not going to fall to 6.5%, which is the trigger for the Fed stopping zero policy rates," Roubini said. - in CNBC

Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.