Nouriel Roubini: Economy In Danger Of Slowing Down

Nouriel Roubini is the New York University professor who predicted the United States financial crisis, and was consequently dubbed a doomsday prophet. Now, Roubini believes that the economy is in danger again, which may result in the slowdown of economic growht next year.

His reasoning? When speaking with Michael Milkin at the Milken Institute’s 2012 Global Conference in Beverly Hills, he stated that, “We may be going back to stall speed in the U.S. economy,” because of stagnant wages and gridlock in Washington with fiscal policy. He further explained:

“The optimists today are saying the U.S. is on the cusp of a self-sustaining recovery. My view of it is: The data suggest that we’ll be lucky if this year we’re going to grow [by] barely 2%.”

Milking the institute’s founder, discussed with Roubini the top problems facing America’s economies, as well as those around the globe. Nouriel Roubini stated that one major issue facing the economy is the possibility of a military confrontation between Iran, Israel, and the United States.

The NYU professor also states that political conflicts in the Middle East, which have been going on for years, are a “total mess.” He predicts that The Arab Spring “will become and Arab winter.”

Thirdly, he believes that in order to maintain a strong growth in the U.S. economy, we must have an energy strategy. He asked, “Where is the leadership?” when speaking about energy. Nouriel believes that, while America is discovering other energy sources, such as natural gas, energy independence is “going to be a 20-year story.”

Finally, America’s economy is being affected by the European debt crisis, which makes the future of the Euro currency unknown. The debt crisis, which caused the Prime Minister of The Netherlands, along with his entire cabinet, to resign last week, is augmented by social and political backlash, which could result in the break up of the European Union’s common currency. Of the Euro’s future, Nouriel Roubini states:

“Breaking up is going to be a mess…financial contagion will be significant.”

Do you think that Nouriel Roubini is right in his prediction?

Check out more information about Roubini’s view on a pending recession here:

[iframe src=”http://www.youtube.com/embed/wTRHqfog78E” width=”560? height=”315?]