Dr. Doom predicts double dip over 40% likely

Nouriel Roubini, sometimes called 'Dr. Doom,' foresees zero growth and severe deflation.

By , Guest blogger

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    Nouriel 'Dr. Doom' Roubini, Professor of Economics at New York University and Chairman of Roubini Global Economics, speaks at the opening session of the Global Financial Forum in New York, April 26.
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Nouriel Roubini, or “Dr. Doom” as he’s also known, is a New York University professor and co-founder of Roubini Global Economics. As his nickname implies, his opinions tend to be on the gloomy side, and in this recent interview he describes “monetary policy as impotent” and estimates a GDP growth rate in this year’s second half of, well, just about zero percent.

Basically, all the gimmicks tried so far, including the job-boosting census, as well as cash for clunkers, first-time homebuyer tax credits, and so forth, have artificially bolstered earlier growth, but are destined to leave gaping holes in the economy in this year’s second half. So, as he succinctly states, “in the short run we may end up like Japan, in a severe deflationary trap.”

See the CNBC interview below which came to our attention via The Daily Bail’s post on how Bernanke’s quantitative easing fantasy is destined to fail.

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