Nouriel Roubini Teaches A Lesson In How To Write A SERIOUSLY Negative Paragraph About The Economy

Nouriel Roubini

Ladies and gentleman, may we present EXHIBIT A in why Nouriel Roubini is the pre-eminent Dr. Doom, and all of the other doomsayers play second fiddle.

Check out this paragraph from his latest Forbes op-ed about the ongoing risks to the economy.

With growth nearly stalled, an unstable disequilibrium arises that is likely to tip the economy into a double-dip recession. The unemployment rate climbs, the budget deficit widens because of automatic stabilizers, home prices keep falling, bank losses are much larger and protectionist pressures come to a boil. Stock markets could sharply correct, and credit and interbank spreads could widen as risk aversion increases. A negative feedback loop between the real economy and the financial system could easily tip the economy into a formal double dip: The real economy reaches a near-stall speed and risky asset prices correct downward, leading to a negative wealth effect, a higher cost of capital and reduced business, consumer and investor confidence.

We’ve read that like 5 times, and we’re still not sure exactly what it all means, except that with terms like “unstable disequilibrium” and “negative feedback loop” and “formal double dip” it sounds pretty horrible.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.