The US could see a major recession, according to analyst Nouriel Roubini, of the Stern School of Business of New York University.
There is now a consensus that the US will see a slowdown and probably a recession in the near future, but Roubini predicted this as far back as mid-2006, when his position was in the clear minority.
Worryingly, Roubini now forecasts that the chances of a disastrous sequence of events with dire economic and financial consequences are rising.
Between four and six trillion dollars would be slashed from household wealth if prices crash by 20-30% as he predicts.
This would worsen the already substantial writedowns from the subprime mortgage crisis and trigger defaulting on unsecured personal debt, the downgrading of monoline insurers and possibly the bankruptcy of a major financial institution.
Read Complete Story
Monday, February 25, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment