Economic Contraction to Slow, Roubini Says (Correct)

Monday, April 27, 2009

Economic Contraction to Slow, Roubini Says (Correct)

By James Kraus

(Corrects to last name in headline)

April 27 (Bloomberg) -- The U.S. economic contraction will slow from 6 percent in the last two quarters to 2 percent by the fourth quarter, economist Nouriel Roubini said in an interview with the Washington Post and Newsweek.

Growth will reach 0.5 percent next year rather than the 2 percent anticipated by most economists, and unemployment will be well above 11 percent, Roubini added.

The end of the contraction probably still won't be felt until the beginning or middle of 2010, Roubini estimated. The European and Japanese economies will remain in recession until the end of next year, Roubini said.

The U.S. is in the midst of a U-shaped rather than L-shaped recession thanks to government intervention, which may need to be extended to a temporary takeover of banks because of the large amount of problem assets, the economist added.
Last Updated: April 27, 2009 04:46 EDT

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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.

NOURIEL ROUBINI BLOG

Monday, April 27, 2009