Sunday, June 19, 2011

Nouriel Roubini: This "Perfect Storm" Of Threats Could Slam The Economy By 2013


Gregory White
Jun. 13, 2011, 7:19 AM
Image: US Air Force


There's a "perfect storm" of threats brewing, and it could slam the global economy as soon as 2013, according to Nouriel Roubini.

Roubini believes that a slowdown in China, the damage done to Japan, the current debt crisis in Europe, and the emerging one in the U.S. have a one third chance of damaging the global economy.

Roubini, from Reuters:

“There are already elements of fragility,” he said. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest.”

Roubini still believes we may escape the worst of this scenario, with the global economy bumping along, with weak growth.

One of the big threats Roubini believes the world is facing is a hard landing in China. He sees that country's non-performing loan problem expanding, if it does not quickly reshape its economy around domestic demand.

Combining that with the situation in Europe, and the U.S. failing to get its debt situation under control, and the world economy may have the right mixture for another dark period as early as 2013.


Source: http://www.businessinsider.com/noriel-roubini-perfect-storm-economy-2013-2016#ixzz1PlxGFJmK
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