Here’s the latest from Dr. Doom. He thinks the best strategy is to lend, hope and pray…
From The Telegraph by Richard Blackden entitled: Nouriel Roubini: ‘The economic policy is still lend, pray and hope’
“Nouriel Roubini, a New York professor of Iranian origin, expects China, India and Brazil to collectively grow at 6.3pc in 2011, more than triple the 2.1pc he predicts the developed economies will muster.
“The good news about advanced economies is that the tail-risk of a double-dip recession has receded,” Mr Roubini said as he presented his outlook for 2011 at the office of Roubini Global Economics in Greenwich Village, New York.
The picture echoes the consensus forming in financial capitals that it will again be the emerging economies that are sprinting, while consumers and governments elsewhere repair balance sheets that were stretched to breaking point during the crisis.
Among the Western laggards, Roubini expects the US to enjoy the fastest growth – at 2.7pc – as a combination of quantitative easing (QE) and the tax cuts agreed last week in Washington provide some support. Germany follows at 2.2pc, down from 3.5pc in 2010, while the UK will grow 1.7pc, slightly weaker than this year’s 1.8pc.
Mr Roubini, who rejects the accusation that he is a natural pessimist, says the greatest risks to this scenario unfolding lie in the next six months and come from the troubled eurozone.
“The risk of something disorderly happening is still significant,” he explained. “At the moment, the policy is still lend, pray and hope this is a liquidity problem and not a solvency problem.”
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