Wasn't he paying attention when the stock market shot up yesterday? Surely that meant everything was fine because the market never has celebrations without seeing something positive for the long term. Besides, what does the economist who predicted the last recession really know? CNBC:
The world's advanced economies are headed for a second recession, regardless of whether there is further chaos in Europe, Nouriel Roubini told CNBC on Tuesday. The economist who correctly predicted the 2008 financial crisis, but has got some other bearish calls wrong, said his reading of recent data suggested the U.S., euro zone and the UK are already on the verge of falling into a recession in the next quarter or two.NOTE FROM JOHN: And as Joe Stiglitz told Chris and me while we were interviewing him in Paris in August, this is really the wrong question. Whether or not we "officially" enter into a second recession, we're still up the proverbial creek without a paddle (my words, not his) in terms of how bad our economy is, and the fact that it's not going to improve significantly for a long time. It really doesn't matter what you call it, it's bad.
"The question is not whether or if there is going to be a double dip, but whether it's going to be mild or severe with another financial crisis," Roubini told CNBC on the sidelines of the World Knowledge Forum in Seoul. "The answer on that depends on the euro zone."
According to Roubini, a disorderly situation in Europe caused by a sovereign debt default, a banking crisis or an exit of one of the members from the euro zone, would be a shock more severe than the collapse of Lehman Brothers. He added that Europe had to get its act together and "do the right thing" by the G20 meeting in Cannes in the first week of November.
