Nouriel Roubini: Housing Recovery is Overhyped
Speaking on Bloomberg Surveillance, Nouriel Roubini, chairman of Roubini Global Economics, said he believes there is a recovery in the housing market. However, he feels the popular optimistic view on housing will be proven wrong in 2013. Currently housing amounts to only two percent of GDP, so the effect on the overall economy will be small (around 0.2 to 0.3 percent), Roubini added. He also commented on shadow inventory and the hype surrounding the real estate recovery.
When asked to comment on the U. S. manufacturing renaissance, Roubini said, with the rise of robots and automation, the factory of the future will entail 1,000 robots with one single worker on the factory floor.
Back in July Roubini foresaw an economic storm heading our way which would strike full force in 2013 [link].