Nouriel Roubini on CNBC

By on September 10, 2008

Nouriel Roubini was on CNBC this morning and reiterated his negative view on the world economy. Roubini in his closing comments stated, “We’re in the middle of a recession, consumption is falling in June, July and August and its not just the U. S. anymore…55% of global GDP is contracting…credit spreads are as wide as ever, interbank spreads are as wide as ever, the Fed is running out of bullets, the government is running out of bullets because we are having huge fiscal deficits and there is no end to it…this is a very severe economic and financial crisis, becoming global, and the real economic contraction is going to make the credit crunch worse and credit crunch becoming worse is going to make the real contraction worse, so in this vicious circle of negative feedback…is the danger we are facing.”

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