Nouriel Roubini speaks with Bloomberg TV, saying that he expects the worst US recession in 50 years, and a global recession that will last through next year. Roubini is widely seen as having correctly forecast the current credit crunch and the problems associated with the spreading financial crisis, but the frequent knock on him is that he was too early in his calls and consistently bearish on the economy for the past several years.
This is a point that was brought up in the interview, when Bloomberg's anchor asked Roubini why he is so certain about his dour economic outlook in the near term.
Roubini sticks to his guns, citing a panoply of falling economic indicators and the futility of the Fed's stimulative actions in affecting market interest rates, where spreads of high yield bonds over Treasuries are higher than they've ever been. The credit crunch has continually spread and "it doesn't matter what the Fed does".
Having said all that, Roubini still calls for more fiscal stimulus from the government in order to help those affected by the recession and credit crisis, as well as more "unorthodox" actions from the Fed on the monetary policy side.
This prescription for government/Fed stimulus is in stark contrast to the views of Jim Rogers, who you'll hear from in our next interview clip. Stop back in later this afternoon to hear more on that.