Nouriel Roubini was right. A few years ago, at a time when the likes of Alan Greenspan were dismissing concerns about excessive home prices and stating that banks were stronger than ever, Roubini warned about a bubble in the housing market and that the bursting of that bubble would cause much of the financial system to collapse. And so it has turned out, with even the most seemingly outlandish of Roubini's predictions matched or even exceeded by reality. He is one of only a handful of economists who saw the crisis looming. Of course, you are only as good as your last forecast. However, since he was correct about the financial crisis it seems prudent to pay attention to what he expects to happen in the future.
Roubini, whos dire economic forecasts earned him the nickname "Doctor Doom", recently told CNBC this past week that the economic recovery is going to be "very ugly." "The recovery is going to be subpar," Roubini said. "I see a one percent growth in the economy in the next few years. There will also be 11 percent unemployment next year and the recovery is going to be slow. It's going to feel like a recession even when it ends."
Asked about his comments in a speech last week about the recession ending in 2009, Roubini said, "I've been saying all along the recession is going to last 24 months. It started in December of 2007 and my view is that it won't be over until December of this year." Click on the video below for the full interview.
