Influential economist Nouriel Roubini, who accurately predicted the last economic meltdown, predicts more trouble ahead. In a Wall Street Journal “Big Interview” on TV last week, Roubini gave a very pessimistic forecast for the world economy.
Roubini blamed George W. Bush for the current financial crisis, and for leaving Obama to clean up the mess. He goes on to say tht the U.S. and Europe are implementing austerity programs, when they should be introducing more money stimulus.
Where would he put money now? “This is not the time to be in risky assets,” suggests Roubini, and recommends putting money in cash now. “Better to be safe rather than sorry.”
Other fascinating quotes from the 22-minute interview:
“The risk of a global recession is greater than 50 percent.”
“Karl Marx had it right. At some point, Capitalism can destroy itself.”
“You cannot keep shifting income from labor to capital without not having excess capacity and lack of aggregate demand. And that’s what’s happening,”
“We thought markets worked. They’re not working.”