Roubini says: Double-Dip Recession still possible

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Politics, Bailout News, The Economy, Real Estate August 3rd, 2009

CNBC reports the following:

The United States, Europe and Japan still face the possibility of a double-dip recession and at the very least will experience below-potential economic growth for the next couple of years, economist Nouriel Roubini told CNBC Monday.

The double-dip is still possible because of very large budget deficits that are being monetized by monetary-policy authorities

If central banks continue to monetize the deficits, “long-term bond yields may go higher, and they may crowd out the economic recovery leading to a double dip,” he said.


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