Willing to Settle for Yellow Weeds Over Scorched Earth? You Betcha!
The good news here is of the second-derivative nature. NYU econ icon Nouriel Roubini offers nine reasons for continued pessimism about the outlook for 2009, 2010, and well, just about every year after that.
Dr. Doom's Top 9
The crucial issue, however, is not when the global economy will bottom out, but whether the global recovery – whenever it comes – will be robust or weak over the medium term. One cannot rule out a couple of quarters of sharp GDP growth as the inventory cycle and the massive policy boost lead to a short-term revival. But those tentative green shoots that we hear so much about these days may well be overrun by yellow weeds even in the medium term, heralding a weak global recovery over the next two years.
For Roubini, the economy’s antonym for Houdini, continued doom has nine principal causes, which he happily enumerates here.
Still, that’s not as bad as it was a few months ago. Then, it would have been a Top 10 list.
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