Nouriel Roubini is at an economic conference on beautiful Lake Como Italy, where he predicted that more than 400 banks on the US problem bank list are eventually going to fail.
And he warned about the sorry state of the US consumer.
Roubini said he believes hopes of decoupling will be dashed as the slowdown in the US impacts China, Japan and the euro zone. “In Europe, Germany is strong but the rest of the continent is pretty dismal,” he said. “The rest of the world cannot cope without the prop of the US consumer. Chinese growth in the second half will be 7 per cent.”
“Get used to it,” Roubini said. “Deleveraging has to continue as governments and consumers deleverage in the developed world.”