ECB: A Rate Cut Today Would Be Warranted

ECB refi rate back to its 1 percent level before the mistaken 2011 rate hike. Given the severe Euro Zone recession a rate cut today would be warranted.

(Source: Roubini`s Official Twitter)

Related, iShares MSCI Germany Index Fund ETF (EWG), iShares MSCI Italy Index ETF (EWI)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

China: A Sign Of Hard Landing?

China's electricity consumption fell by 7.5 percent in January, a signal that industrial production may have sharply slowed. A sign of hard landing?

(Source: Nouriel`s Official Twitter)

Related, iShares FTSE/Xinhua China 25 Index ETF (FXI)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

A Macro Global View Is Critical For Asset Managers

Anybody who does any asset management needs to know and understand the macro and top-down – the linkages across countries and not just individual countries. You need to know what happens in Greece can affect the global economy and financial market. I think a macro global view is critical (for hedge funds). - in Investment Europe

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Russia: The Middle Class Is Tired Of Corruption, Authoritarianism

First large scale opposition demonstrations today in Moscow: the middle class is tired of corruption, authoritarianism and lack of reforms. - in Roubini`s Official Twitter

Related, Market Vector Russia ETF Trust (RSX)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

The Super Rich Spend Little Of Their Incremental Income

The super rich spend little of their incremental income, so we have a problem of aggregate demand, and that hurts the economy. - in The Nation

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Capitalism Creates Obstacles To Its Own Advancement

Marx was right; capitalism creates obstacles to its own advancement. - in The Nation

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

There Is A Reasonable Likelihood Of Further Monetary Easing

One of my key takeaways from the World Economic Forum in Davos, Switzerland, and a day in Frankfurt, Germany, spent meeting senior ECB officials is that there is a reasonable likelihood of further monetary easing — and liquidity firewalls - around the world given the existence of fiscal drag, with austerity and downside growth risks. - in RGE

Related, iShares MSCI Germany Index Fund ETF (EWG), iShares MSCI Italy Index ETF (EWI)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

It`s A Very Delicate Global Economy

We live in a world where there is still a huge amount of economic and financial fragility. There is a huge amount of uncertainty — macro, financial, fiscal, sovereign, banking, regulatory, taxation — and there is also geopolitical and political and policy uncertainty.

There are lots of sources of uncertainty from the eurozone, from the Middle East, from the fact that the U.S. is not tackling its own fiscal problem, from the fact that Chinese growth is unbalanced and unsustainable, relying too much on exports and fixed investments and high savings, and not enough on consumption. So it's a very delicate global economy. - in a AP interview

Related, iShares MSCI Emerging Markets Index ETF (EEM), iShares FTSE/Xinhua China 25 Index ETF (FXI)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

A G-20 Or G-Zero World?

This doesn't look like a G20 world; it looks like a G-Zero world. There is disagreement. There is no leadership. In a world where we have the rise of many powers, the United States cannot impose its will. - in Public Service Europe

Related, iShares MSCI Emerging Markets Index ETF (EEM), SPDR S&P 500 Index ETF (SPY)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

The Euro Zone Is A Slow-Motion Train Wreck

The euro zone is a slow-motion train wreck. Not only Greece, other countries as well are insolvent.

There`s a 50 percent probability that over the next three to five years the euro zone will break up. - in Business Week

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

China: Growth Is Slowing

Export growth is slowing. If they don't do something - stimulus in monetary and fiscal credit - the risk is that the growth will slow down well below 8 per cent. - in Sydney Morning Herald

Related, iShares FTSE/Xinhua China 25 Index ETF (FXI)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Europe: The Policy Response Is Making The Recession Worse

"The policy response is making the recession worse. What Europe needs is less austerity and more growth." - in The Guardian

Related, iShares MSCI Spain Index ETF (EWP), iShares MSCI Italy Index ETF (EWI), iShares MSCI Germany Index Fund ETF (EWG)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

US 4th Quarter Growth Was Lower Than Forecasts, Likely To Be Revised Even Lower.

US Q4 growth at 2.8 percent lower than optimistic forecasts of 3.5 percent. Also likely to be revised down once better data on small firms/shops are out.

(Source: Roubini`s Official Twitter)

Related ETFs, SPDR S&P 500 Index ETF (SPY), iShares Barclays 20+ Year Treasury Bond ETF (TLT)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Europe Needs Massive Monetary Easing

Europe needs massive monetary easing to get out of its debt crisis. - in CNBC

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Greece Won`t Be The Last Country To Restructure Its Debt

Greece is going to be the first country to restructure its debt, I don't think it's going to be the last one. - in the WEF, Davos

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Eurozone Needs Less Austerity And More Growth

“There’s a severe recession in the periphery of the euro zone. Less austerity, more growth, that’s what the euro zone needs today.” - in CNBC

Related, iShares MSCI Spain Index ETF (EWP), iShares MSCI Italy Index ETF (EWI)


Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

I Don`t Own A Car, Boat Or Plane

No car, no boat, no plane. In my free time, I wear blue jeans. I love culture, the visual arts, literature. My only conspicuous consumption is contemporary art, but I usually buy young artists, even before they have gallery representation. I go to their studios. It's a passion, not an investment. - in Business Insider

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Problems Facing The Global Economy

Most problems facing the global economy are not temporary or random. - in Forbes.com

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Tail Risks In The Global Economy

Last year was a year of risk, volatility, uncertainty and surprises and the question is, ‘Are they going to happen again?’

If you think about all these tail risks about the global economy, the reality is many of them are not temporary. Many of them are not transitory and many of them are not random events. They’re going to be sources of volatility. - in Bloomberg

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Emerging Markets In Much Better Shape Than Most Advanced Economies

Mexico doing well: low debt, low deficit, low inflation, good growth. Emerging markets in much better shape than most advanced economies.

(Source: Roubini`s Offical Twitter page)

Related, iShares MSCI Mexico Index ETF (EWW), iShares MSCI Emerging Markets Index ETF (EEM)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Net Exports Will Be A Drag On Growth In 2012

Given anemic growth in domestic demand, America’s only chance to move closer to its potential growth rate would be to reduce its large trade deficit. But net exports will be a drag on growth in 2012.

(Source: Economonitor)

Related, iShares Russell 2000 Index ETF (IWM)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Mexico: Faster Growth Depends On Structural Reforms

Mexico growth will be moderate in 2012 (3 percent) and below trend given external risks. Faster potential and actual growth depends on structural reforms.

(Source: Roubini`s Official Twitter)

Related ETFs, iShares MSCI Mexico ETF (EWW)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

How Europe Can Possibly Grow Its Way Out Of The Debt Crisis?

The underlying picture of economic weakness that has not only worsened but has spread to the core economies raises the question of how Europe can possibly grow its way out of the debt crisis. - in Roubini Global Economics

Related, Eurostoxx 50 Index, Dax Index, Cac 40 Index

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

US Job Growth Is Still Too Mediocre

US job growth is still too mediocre to make a dent in the overall unemployment rate and on labour income. The US needs to create at least 150,000 jobs per month on a consistent basis just to stabilise the unemployment rate. More than 40 per cent of the unemployed are now long-term unemployed, which reduces their chances of ever regaining a decent job. - in The Straits of America

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

What Will The Federal Reserve Do?

Given the bearish outlook for US economic growth, the Fed can be expected to engage in another round of quantitative easing. But the Fed also faces political constraints, and will do too little, and move too late, to help the economy significantly.

Moreover, a vocal minority on the Fed’s rate-setting Federal Open Market Committee is against further easing. In any case, monetary policy cannot address only liquidity problems – and banks are flush with excess reserves. - in Project Syndicate

Related, Bank Of America (BAC), JP Morgan (JPM), Wells Fargo (WFC), Citigroup (C)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

The Housing Market Is Comatose

Even after six years of a housing recession, the sector is comatose. With demand for new homes having fallen by 80 percent relative to the peak, the downward price adjustment is likely to continue in 2012 as the supply of new and existing homes continues to exceed demand. - in Project Syndicate

Related, Lennar (LEN), KB Homes (KBH), D.R. Horton (DHI), Toll Brothers (TOL), Masco (MAS)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

US Economy: The Recent Bounce In Investment Spending Will End

The recent bounce in investment spending (and housing) will end, with bleak prospects for 2012, as tax benefits expire, firms wait out so-called “tail risks” (low-probability, high-impact events), and insufficient final demand holds down capacity-utilization rates. And most capital spending will continue to be devoted to labor-saving technologies, again implying limited job creation. - in Economonitor

Related, Materials Select Sector SPDR (XLB), Energy Select Sector SPDR ETF (XLE)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

US Economic Outlook

Macroeconomic indicators for the United States have been better than expected for the last few months. Job creation has picked up. Indicators for manufacturing and services have improved moderately. Even the housing industry has shown some signs of life. And consumption growth has been relatively resilient.

But, despite the favorable data, US economic growth will remain weak and below trend throughout 2012. Why is all the recent economic good news not to be believed?

First, US consumers remain income-challenged, wealth-challenged, and debt-constrained. Disposable income has been growing modestly – despite real-wage stagnation – mostly as a result of tax cuts and transfer payments. This is not sustainable: eventually, transfer payments will have to be reduced and taxes raised to reduce the fiscal deficit. Recent consumption data are already weakening relative to a couple of months ago, marked by holiday retail sales that were merely passable.

At the same time, US job growth is still too mediocre to make a dent in the overall unemployment rate and on labor income. The US needs to create at least 150,000 jobs per month on a consistent basis just to stabilize the unemployment rate. More than 40 percent of the unemployed are now long-term unemployed, which reduces their chances of ever regaining a decent job. Indeed, firms are still trying to find ways to slash labor costs. - in Economonitor

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Latest Video Interview: Eurozone Concerns

Video Interview, ET NOW.

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.