Doctor Doom :Economist Nouriel Roubini's Firm Is For Sale

Doctor Doom :Economist Nouriel Roubini's Firm Is For Sale
Published: Tuesday, 11 Oct 2011 | 12:26 PM ET
By: David Faber
CNBC Anchor and Reporte

Roubini Global Economics, the economics research firm begun by noted economist Nouriel Roubini, is for sale, according to sources who have been approached by an investment bank conducting an auction for the firm.

RGE, as it's known, has grown quickly since its founding by Roubini, who is its chairman. It has over 85 employees, and is still losing money.

According to people who have seen the offering book for the sale, the firm is projected to have revenues of $14 million this year and it will post a loss of roughly $2 million dollars, and projects eight percent revenue growth into next year followed by 40 percent revenue .

http://www.cnbc.com/id/44859944

Obama's Spending Freeze Just 'Spare Change': Roubini

Obama's Spending Freeze Just 'Spare Change': Roubini

The White House plan to partially freeze government spending is just "spare change" compared to a budget deficit of more than $1 trillion and eventually the US will have to raise taxes, economist Nouriel Roubini of Roubini Global Economics told CNBC Wednesday.

President Barack Obama proposed a five-year freeze on non-discretionary defense spending for five year to lower the deficit by about $400 billion.

But more actions will be needed to seriously tackle the deficit, Roubini said at the World Economic Forum in Davos, Switzerland.

The government will have to work on reform on entitlement programs like Social Security and "also eventually raise taxes for both the rich and the middle class," he said.

http://www.cnbc.com/id/41268003

Roubini : A presidency heading for a fiscal train wreck

Roubini : A presidency heading for a fiscal train wreck

By Nouriel Roubini

Published: October 28 2010 20:48
Last updated: October 28 2010 20:48

http://www.ft.com/cms/s/0/dd140d16-e2c2-11df-8a58-00144feabdc0.html

What has been the fiscal performance of President Barack Obama? He inherited the worst economic crisis since the Great Depression, as well as a budget deficit that – after much needed bail-outs and a series of reckless tax cuts – was already close to $1,000bn. His stimulus package, together with a backstop of the financial system, low rates and quantitative easing from the Federal Reserve, prevented another depression. Mr Obama also deserves credit that the US, alone among advanced economies, currently supports a “growth now”, rather than an “austerity now” path.

But this is but one half of the picture; we must also judge his first two years on his ability to anticipate what the economy will need tomorrow. Here the picture is much less positive. Given the likely path of fiscal policy after next Tuesday’s election – with the expiration of existing stimulus and transfer payments, and even with most of the 2001-03 tax cuts being kept – the US economy will soon experience serious fiscal drag just when it needs a further boost. Problematically, the administration’s failures leave it relying on the Fed, which is bent on further QE, likely to be announced next Wednesday. But studies show this will have little effect on US growth in 2011, so fiscal policy should be doing some of the lifting to prevent a double dip recession.

 In an ideal world Mr Obama would also have been able to move towards reforming and reducing entitlement spending, with commitments to measures that could be phased in over the next few years, therefore avoiding short-term fiscal pain. He would also have committed to increase, gradually over the next few years, less distortionary taxes such as a VAT and a carbon tax. This would have reduced the fiscal deficit, and created a climate in which no investor would worry about additional stimulus.

http://www.ft.com/cms/s/0/dd140d16-e2c2-11df-8a58-00144feabdc0.html

Roubini ,"There is no private sector jobs growth"

More than 400 US Banks Will Fail: Roubini
Published: Friday, 3 Sep 2010 | 3:00 AM ET Text Size By: Patrick Allen
CNBC Senior News Editor

http://www.cnbc.com/id/38986777

Even if the US and European economies manage to avoid a double dip, it will still feel like a recession, while more than half of the 800-plus US banks on the "critical list" are likely to go bust, according to renowned economist Nouriel Roubini of Roubini Global Economics.

The second half of the year will remain weak as tailwinds become headwinds, Roubini told CNBC on the shores of Lake Como, Italy at the Ambrosetti Forum economics conference.

"In the second half, fiscal policy becomes a headwind, no more cash for clunkers," Roubini said. "The positive scenario is that growth will be below par."

Roubini recently said the chance of a double-dip recession in the US was now more than 40 percent.

"The big risk is that there will be a downturn in markets that could impact the bond, the equity and the credit markets," he said.

“Job losses have been higher, the US jobs number will show that. There is no private sector jobs growth," he said. "Consumption is weak, exports are weak and housing is weak."

"If there is no final sales and no final demand, companies will not invest," he added.

more:
http://www.cnbc.com/id/38986777

“The bond vigilantes are walking out on Greece, Spain, Portugal, the U.K. and Iceland,” Nouriel Roubini

Roubini Says Rising Sovereign Debt Leads to Defaults (Correct)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aI3RdzN1y79k

By Vivien Lou Chen and Gabrielle Coppola

(Corrects name of website that published Feldstein article in 10th paragraph of article originally published on April 29)

April 29 (Bloomberg) -- Nouriel Roubini, the New York University professor who forecast the U.S. recession more than a year before it began, said sovereign debt from the U.S. to Japan and Greece will lead to higher inflation or government defaults.

Almost $1 trillion of worldwide equity value was erased April 27 on concern that debt will spur defaults, derailing the global economy, data compiled by Bloomberg show. German Chancellor Angela Merkel and the International Monetary Fund pledged to step up efforts to overcome the Greek fiscal crisis, after bonds and stocks fell across Europe in the past week.

“The bond vigilantes are walking out on Greece, Spain, Portugal, the U.K. and Iceland,” Roubini, 52, said yesterday during a panel discussion on financial markets at the Milken Institute Global Conference in Beverly Hills, California. “Unfortunately in the U.S., the bond-market vigilantes are not walking out.”

Credit-rating cuts on Greece, Portugal and Spain this week are spurring investors’ concern that the European deficit crisis is spreading and intensifying pressure on policy makers to widen a bailout package. Roubini’s remarks underscore statements by officials such as Dominique Strauss-Kahn, managing director of the IMF, that the global economy still faces risks.

Sovereign Debt

“The thing I worry about is the buildup of sovereign debt,” said Roubini, a former adviser to the U.S. Treasury and IMF consultant, who in August 2006 predicted a “painful” U.S. recession that came to fruition in December 2007. If the problem isn’t addressed, he said, nations will either fail to meet obligations or see faster inflation as officials “monetize” their debts, or print money to tackle the shortfalls.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aI3RdzN1y79k