Countering Maria Bartiromo, the mouth piece's prediction of a Market Surge should Republicans win

[Mira]

http://www.thedailycrux.com/content/5694/US_dollar/eml


Tuesday, September 07, 2010

From Bloomberg:

New York University Professor Nouriel Roubini talks about hard assets and currencies in case the ecomony slips back into a recession.

Roubini, who forecast the U.S. recession more than a year before it began, today predicted that the U.S. economy is set to slow in the second half of the year as "tailwinds" such as fiscal stimulus and inventory adjustment become "headwinds."

"We can try to prevent double-dip recession, but the idea we are going to have rapid recovery of growth to potential in advanced economies – U.S., Europe, Japan – is mission impossible," he said.

"If global imbalances caused this crisis, the bad news is they're back," he said. "The short answer is that nothing is going to replace the U.S. consumer in the short term."


Harvard University historian Niall Ferguson said the global economy remains plagued by the trade imbalances that helped trigger the financial crisis and that U.S. consumers are not going to provide the engine of the growth.

"If global imbalances caused this crisis, the bad news is they're back," he said. "The short answer is that nothing is going to replace the U.S. consumer in the short term."

He agreed with Roubini that growth in developed economies will remain lackluster, and said that the U.S. in particular risks stuttering if the Democratic Party loses control of Congress and President Barack Obama's leadership becomes hampered.