ROUBINI COMMENTS

NYU’s Roubini: "Nowhere to Hide" from Global SlowdownJan 28, 2009 08:44am EST by Tech Ticker in Investing, Newsmakers, Recession, Banking
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Nouriel Roubini of NYU’s Stern School of Business is making fresh headlines, as he's forecasting an even more dire outlook for the global economy. In an interview yesterday with Bloomberg News in Zurich, Roubini said:
The U.S. will lose 6 million jobs with unemployment reaching at least 9 percent.
The U.S. economy will expand 1 percent at most in 2010.
Economic growth in China will slow to less than 5 percent.
He reiterated his statements that the biggest U.S. banks are insolvent, and that losses could reach $3.6 trillion, far exceeding his original estiamtes.
Is Roubini -- nicknamed "Dr. Doom" for his pessimistic yet accurate forecasts in recent years -- off the mark? We ask colleague and fellow NYU economist Lawrence White. One message from White is clear. Acknowledge losses swiftly or we risk a Japan-like drawn-out recession with no near-term recovery in sight. Yesterday, White and Henry Blodget also discussed:
Why the U.S. government is afraid to let banks fail amid growing chatter in Washington D.C. for an "aggregator" bank model, and
The need for corporate executive accountability as John Thain, formerly of Merrill, denied charges he failed to warn Bank of America of mounting losses.