Survival And Prosperity

Nouriel Roubini: ‘Highly-Likely Chance We’re Going To Go Over The Cliff’

Last time I mentioned Dr. Nouriel Roubini, a former Treasury official in the Clinton administration who correctly-called the 2008 global financial crisis, he was warning about a slowing U.S. economy. Well, the professor of economics at New York University and chairman of Roubini Global Economics appeared on Bloomberg Television’s Surveillance earlier today and discussed the looming “fiscal cliff,” the combination of tax hikes and spending cuts the U.S. faces on January 1 under current federal law. “Dr. Doom,” as the media sometimes refers to him as, warned viewers:

I think there’s a highly-likely chance we’re going to go over the cliff. If we do so, the market reaction is going to force the two sides to reach an agreement. But even if we reach an agreement, like I said- you’re going to have 1 to 2 percent drag on growth in an economy that’s barely growing.

“Roubini Says Fed Inflation Targeting Out the Window”
Bloomberg TV Video

Tags: 2013 Fiscal Cliff, Nouriel Roubini, spending cuts, tax hikes