Tuesday, November 11, 2008

Stock Market To Fall Another 20%-25%: Roubini

From CNBC:

The economy will worsen in the coming months and cause the market to fall another 20 to 25 percent in the United States and abroad, said Nouriel Roubini, a New York University business professor, on CNBC’s “Squawk Box” on Monday.

There's going to be negative growth all the way to the end of 2009," he said. “The surprises from now are going to be on the downside, for the economy, for earnings, for the financial system."

Job losses will accelerate in the next months, Roubini said, and he expects a weak economic recovery in the short and mid-term.....MORE

HT: Bryan Caplan at Econlog who asks, in reference to Roubini's endorsement of an auto industry bailout:
...I wonder: If I had correctly predicted the stock market crash, if I were "Dr. Doom," would people be listening to my policy advice to let the free market work out its own solution?