Roubini : Stocks not yet pricing in economic reality

Roubini with Some Interesting Perspectives, 09/03/10

Roubini says the fiscal stimulus "becomes a drag" late this year and that monetary expansion won't be helpful given that there are already over $1 trillion in excess bank reserves, long term rates are low, and we're in a process of massive deleveraging. This is in sharp contrast to Bernanke's claims that the Fed still has some easing tools that can make a difference.