Friday, October 8, 2010

Roubini, Volcker Both Issue Grim Outlooks For U.S. Economy

Former Federal Reserve chairman Paul Volcker and economist Nouriel Roubini seem equally pessimistic about a U.S. economic recovery.

"This has not been an ordinary recession," Volcker, who chairs the president's Economic Recovery Advisory Board, said in a Toronto speech Thursday, according to Bloomberg, and he added that it's "very difficult to find a sector in the American economy that has any spark to it."

Roubini, chairman and co-founder of Roubini Global Economics, expressed a similarly bleak outlook, reiterating his belief that there's a 40 percent chance the economy could slip into another recession, Market Watch reports. Even without a double dip, it will feel like the economy is in a recession, he added. Roubini, whom the New York Times has labeled "Dr. Doom," and who in 2006 predicted the housing crisis, first tweeted the double-dip probability in August and stuck to that belief in September.
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