Roubini Says ISM Was Terrible, Endorses A Suspension Of The Payroll Tax

We’re covering Nouriel Roubini live on CNBC, and in just a few seconds he’s already slammed the ISM report, the monthly jobs report, and today’s initial claims.

Specifically, he noted that new orders in the ISM were week, the services side of it was very bad, that the monthly jobs report wasn’t strong enough to stabilise unemployment, and that today’s initial claims report didn’t get the full data.

What would Roubini do?

“I would subsidise the demand for labour… I would do a temporary cut in the payroll tax.”

He’s also going on on policies that have stolen demand from the future: cash for clunkers, the homebuyer tax credit, etc.

Growth in the first half will be as slow as 1%, he says, which may not be technically a recession, but will feel like it, because there will be no job growth.

“It’s not priced into the market because consensus forecast is for 2.5% growth.”

For investors he says to raise cash: “Better safe than sorry.”

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