Nouriel Roubini: Unemployment Will Rise Through 2010 (VIDEO)

Nouriel Roubini, the chairman of RGE Monitor, appeared on CNBC this morning and had more warnings for those expecting a brisk economic recovery from the recession.

For one, Roubini said, "the labor market is still awful in the U.S. and advanced economies." He also added that the U.S. consumer is "shopped out"

Regarding unemployment, Roubini was equally bearish. When asked whether or not unemployment in the U.S. is heading upwards of 10 percent -- it currently stands at 9.5 percent -- Roubini said that he sees unemployment increasing through much of 2010.

Here's more from Roubini:

"Not just [unemployment] going to go above 10 percent but the risk is it's going to stay above this level and return to more normal only more gradually and that's going to be one of the important sources of weakness for an economic recovery."

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Comments

[stargazer13]

12:00 PM on 10/07/2009

let,s see can I make it on no money for two years !!

I like to eat that cost,s money
I like to be legal and that take money DL# car registration and IN,s that take,s money

I like to where cloths that all so takes money

by the time there is enough job,s for out of work Americas I will being starving and naked
and walking

yeah that give,s me hope !!

feed the poor cloth the naked heal the sick now who was it that said those thing,s

I remember now it was that radical progressive liberal called Jesus Christ !!!

[tuberider]

02:17 PM on 10/06/2009

Oh s#!& ! Roubini just got laid off ! Now how are we supposed to get the...wait!...this just in...uh, that was Larry Roubini, Car Dealer down in Phoenix...sorry...wait...nope... that's Nouriel Schmidt up at the Twin Tetons Lodge in Badger's Pass...wait....

[JoshPr]

12:40 PM on 10/06/2009

I predict there will be no reform or change and Obammi will discourage his followers, hence losing 2012. Dems will also lose a lot of seats in the house in 2010.

good articles; http://iamned2.blogspot.com

Obama= fail

[stargazer13]

11:53 AM on 10/07/2009

every party is going to lose seats this cycle and the next and the one after that !

we are bringing new guards to replace the old one who have become obsolete

[liberalcynic]

11:06 AM on 10/06/2009

Well population increases by 1% every year, productivity increases by 2% on average, so unless there is atleast 3% growth unemployment will increase...
so have fun with that! I'm glad to be living in Australia, shipping millions of tonnes of coal, iron ore and other resources to China and increasing our interest rates!

[LunaPark]

10:18 AM on 10/06/2009

The dollar is crashing. An article from The Independent describes meetings between China, Russia, and several oil producing countries to start pricing oil using a basket of currencies other than the dollar. The New Zealand central bank is going to raise interest rates. Chinese Yuan is preparing to float free vs being pegged to the dollar. The US has spent recklessly for decades. There is no free lunch. We have more debt than we can ever pay back. We're in big big trouble.

[dl63]

07:30 AM on 10/06/2009

I'm not sure why they have him on the show. It's obvious they don't like his analysis. Instead of showing contempt for his view, it would be much better for his viewers to debate him with facts. CNBC tell us where his analysis is wrong. Give us reasons why the economy is entirely out of woods. Explain how jobs will be plentifull again.

[StJames]

11:24 AM on 10/06/2009

CNBC has little in the way of facts. They are cheerleaders for Wall St. nothing more, nothing less. It is their job to snooker lazy small investors into buying stocks. Dylan Ratigan left (not without acrimony) because he was the only host to criticize Wall St. and the rating agencies. Maria Bartiromo and her husband just bought a $6.5 million dollar townhouse in Manhattan. Charlie Gazparino is about as much of an investigative reporter as I am...He never breaks news, just brings you some of the bloody details when it's way too late. They think that by bringing on Roubini they can fool people into believing they are reporting fairly. Roubini is absolutely correct. Unemployment will continue to rise through 2010. What makes that tragic on more than the economic front is that it will cause dems to lose seats in congress, which will further erode any attempt to bring about recovery for the middle class.

[arldi2]

02:28 AM on 10/06/2009

It is fashionable to be a "doom and gloom" talking head these days, and Professor Roubini is much in demand. He is credited with predicting the 2008, year ago, meltdown. But what is not said is the research done by Eric Tyson (erictyson.com)..according to My Tyson:

"Roubini predicted a recession in 2004, 2005, 2006, and 2007. He was wrong four years in a row. So, in 2008, his prediction appears to be finally coming true. Well, a stopped clock is correct twice each day."

He also predicted global or at least US meltdowns on a number of other occasions, including Hurricane Katrina, and, just last January, that oil would not rise about $40/barrel in 2009. Oil is currently oscillation on either side of $70/barrel of late. It is sad but our media want to give time and space to someone who attracts headlines, even if they are negative,.... outrageously negative. This is keeping money on the sidelines...and in effect...further hurting our economy.

[free speech for all]

03:37 AM on 10/06/2009

Fashionable to be a "doom and gloom" ??? Are you kidding me??? The BEARS can be counted on one hand. About 99% of the economists and stock brokers and bankers are BULLS ... all screaming BUY, because the DOW is going to 20,000. You know why? Because they want to unload their toxic waste before things get worse.

[MarcusT]

04:22 AM on 10/06/2009

BINGO! Equities have gone up about $20T lately. They need another $70T just to breath, let alone cover. Expecting the consumer to came back is just plain stupid and there really isn't a plan B.

[TN]

01:46 AM on 10/06/2009

Hello, of course it's going to get worse. You've got unemployment benefits running out, meaning more homes lost and less money to spend around town. Duh

[TruthHurts2]

01:44 AM on 10/06/2009

Does Roubini have tapes on someone high up at HuffPo??...Seriously, this site quotes this guy as if he's Moses giving the Ten commandments.....Can we have a little perspective? During the first quarter, 'Ol Nouriel decided that "the only course of action" for "saving our economy" would be to buy up banks, sell the "bad assets" at a TREMENDOUS LOSS for taxpayers (via "bad bank") and re-open the "good bank" for business. In other words, the "cleaning process" would mean that banks would be bailed out for their entire (bad) asset portfolio!....FORTUNATELY Larry Summers advised against this nonsense. If Ariana's PO'd with the Obama administration's moves in response to the Financial Crisis, it's only fair to consider how much MORE $$$$ Roubini's plan would have cost the tax payer.....The answer is several trillion $$$$ more!....As we say in Philly: Roubini this!

[roudy]

01:27 AM on 10/06/2009

He is wrong. We will see a gradual, small, but positive movement in job growth next year.

[Humanistic]

01:34 AM on 10/06/2009

Your best guess, based on what?

[CaptainVideo]

12:50 AM on 10/06/2009

One thing that would help Obama would be to replace Larry Summers as his main economic advisor with somebody who was not one of the people who caused the meltdown of the financial system.
He is getting very bad economic advice from him.

Maybe Stiglitz.

[CaptainVideo]

12:41 AM on 10/06/2009

This does not have to happen. Stronger, more agressive monetary and fiscal policies could reverse this and restore the economy to full employment much faster. It is excessive timidness on the part of policymakers and Republcan obstructionism that is preventing the policies that are needed from being implemented.

More agressive monetary policy is being inhibited by irrational fears of inflation. To worry about inflation when unemployment is moving to and probably above 10% is like somebody who is lost in the middle of the Sahara and dying of thirst worrying about drowning.

In the case of fiscal policy, irrational fears about TEMPORARY increases in the deficit, as well as Republican and Blue Dog obstructionism are the problem. The costs in lost output and income from this very bad recession far exceed the cost of a temporary increase in the deficit. The additional debt created from a temporary deficit can be paid down once the economy recovers. But the lost output and lost income are permanently lost and can never be recovered.

[hu.man]

01:09 AM on 10/06/2009

We are no track to a V shaped recovery. No need to tinker with what is working. Unemployment is a lagging indicator and "expected" inflation is just that.

[NPRLuvr]

12:21 AM on 10/06/2009

Sad news but likely true. Republicans sold the country out over the last 8 years. All manufacturing was moved overseas and "job outsourcing" became fashionable (encouraged by Gregory Mankiw, Bushs' economic advisor). New industries will have to be created and the damage done by outsourcing will take some time to reverse.

It should never be forgotten just how damaging the past 8 years have been.

[godlessdem]

11:39 PM on 10/05/2009

Nouriel Roubini= Debbie Downer

Too bad he's good at this predictin' bidness.

[Nosybear]

11:17 PM on 10/05/2009

What, do I hear the sound of GOPers cheering?