Davos 2012: Nouriel Roubini Says World Economy To Continue To Stumble Along

DAVOS, Switzerland -- The economist widely acknowledged to have predicted the financial crash of 2008 holds little hope that global economic troubles will be fixed anytime soon and warns that without major policy changes things can still get much worse.

Nouriel Roubini, nicknamed "Dr. Doom" for his gloomy predictions in the run-up to the financial meltdown four years ago, said the fallout could last the rest of this decade.

Until Europe radically reforms itself and the U.S. gets serious about its own debt mountain, he said the world economy will continue to stumble along to the deteriment of large chunks of the world's population – who will continue to see their living standards under pressure, if they have jobs.

Roubini spoke in an interview late Thursday with The Associated Press on the sidelines of the World Economic Forum.

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Comments

[marinatha]

02:11 AM on 01/28/2012

All this from the Great Thinkers of the World.If I am not mistaken, they are why we are here.I'll wait on the one spoken of in Issiah 46:10.Man has done all he has wanted, but man can only do so much.While I am wishing the world well, I do not hold out false hope, in man.Sorry.

[Peanut Santiago]

01:22 AM on 01/28/2012

I guess I think like Dr. Doom.

Some things work to fix or better the economy.
The U.S. did good after the Great Depression and Europe did good after they got over WWII and its aftermath.

I won't bother to say much except that higher tax rates, strict regulation of Wall Street/European stock markets and big banks, and prosecution and punishment of financial bad apples worked just fine.
****Until the early 1980's when those in charge got cocky and started to deregulate and cut tax rates......probably starting in America.

Some things work and some do not.

Deregulation, low tax rates on the upper classes, and all the rest of the kowtowing to the 1% works well for them but not the rest of the people OR the country (countries).

We are reaping what was sown.....and so far those in charge (1% and their bought and paid for politicians) do NOT want to do what works.

What works means the 1% give up some of their money (taxes) and power (regulations) and they are just NOT doing it at this time.

The Great Depression II will be around awhile UNTIL those in charge realize they are destroying their own country (countries) and decide they don't want to live in banana republic type conditions with too much poverty and the danger it brings to them.

[Salukeitis]

03:06 PM on 01/29/2012

Excellent Post. You didn't but I'll name names. The disintegration of our economy started with Reagan and was amost destroyed under gwb. And I agree with Roubini these conditions will linger for years as the 1% gets wealthier.

[YeOldeSnark]

07:06 PM on 01/27/2012

Stieglitz, Roubini, and Krugman have all been wrong in predicting the end of the world. As the economy starts surging, they'll start singing new tunes. The financial talk shows will, of course, continue to have them back to make fresh predictions which again don't come true.

It's all theater. Economists, even the Nobel Prize winners, are not to be taken very seriously.

[Peanut Santiago]

01:28 AM on 01/28/2012

There are TWO problems in America and Europe.

High unemployment and high UNDEREMPLOYMENT.

Even if you put more people back to work while others don't lose their jobs.....what are their wages and benefits?

Are their wages increasing, stagnant, or decreasing?

Can they support themselves and maybe a family with a decent (at least working class) lifestyle?
-------------------------------------------
In my neck of the woods in west central Florida and much of my family in north central New Jersey near New York City.....more and more people are suffering stagnant and decreasing wages and benefits and are losing their former comfortable standard of living.

American (and European) poverty is exploding.

[YeOldeSnark]

02:30 PM on 01/28/2012

In my neck of the woods in west central Florida and much of my family in north central New Jersey near New York City.....m­ore and more people are suffering stagnant and decreasing wages and benefits and are losing their former comfortabl­e standard of living.

American (and European) poverty is exploding.
-------------------------------
In my neck of the woods, the northeast, the same is happening. Only the purveyors of BS and worthless paper by Wall Street investment bankers and other charlatans and hucksters is keeping our economy in this region going. Which is to say, if you can continue to succeed in finding a greater fool to buy your primissory notes and worthless assets,(just as mortgage bankers and real estate agents continued to convince simple-minded people into thinking real estate had no place to go, but up) you can continue to perpetuate the mirage of affluence and a rising standard of living.

When Europe collapses and brings on a new generation of fascist dictators, America will be sleeping at the switch, totally clueless of what is about to happen to this country. The fairytale of the "Shining City on the Hill" image of our founding fathers and the radical right-wing Republicans oafs will explode in everyone's face, as a pure schimerical delusion.

A grand illusion that we are still a viable economy producing "widgets" the rest of the world wants from us. All of this just as we retreat into the caves of neo-isolationism..

[YeOldeSnark]

02:39 PM on 01/28/2012

Roubini has also been very wrong and has a much undeserved reputation as an expert by peddling this nonsense. The U.S. economy will rise mightily this year. Well enough to re-elect Obama and have the Democrats sweep both houses of Congress.

Soon to be followed by a policy comparable to the "Jimmy Carterism" of the 1970s and its penchant for hyper inflation begins to set in. Then, as the Gipper, "The Ronald" did in the 80s, the GOP will rebound, lead us into a deep and dark depression driving us to an even greater crash than 1929 or 1987.

[TheGreatRenewal]

05:51 PM on 01/27/2012

Of course there is gloom and doom because the type of 'growth economy' has sucked us all dry ... our communities, the species, our Commons and our environment. Here's a list of jobs that can be created right now in the millions globally. We have to spend a generation repairing our environment in order to have an economy.

1) Build  millions of miles of bike and horse paths
2) Replant diversified forests, grasslands and hedgerows
3) Tear down derelict buildings and parking lots and plant urban farms
4) Retrofit all buildings
5) Build light rail and trollies
6) Clean up every creek, stream, river, lake, beach
7) Put solar hot water and micro wind on all buildings
8) Develop clean energy
9) Put water catchment on all buildings
10) Modernize water, sewage systems
11) Put all power lines under ground

Join us http://www.facebook.com/TheGreatRenewal

[johnsonc20]

10:35 PM on 01/28/2012

I like all of those things. These are the public works we should be spending money on.

[shakylegs]

09:24 AM on 01/30/2012

A bold and noble statement, GreatRenewal, but it won't happen. Anything that benefits the general citizenry is considered "socialism" by the right wing.