Nouriel Roubini, called the fourth quarter surge in U.S. GDP growth “very dismal and poor” because it relied on temporary factors.
Roubini said more than half of the 5.7 percent expansion reported yesterday by the government was related to a replenishing of inventories and that consumption depended on monetary and fiscal stimulus. As these forces ebb, growth will slow to just 1.5 percent in the second half of 2010.
“The headline number will look large and big, but actually when you dissect it, it’s very dismal and poor. I think we are in trouble.”
Roubini said while the world’s largest economy won’t relapse into recession, unemployment will rise from the current 10 percent, posing social and political challenges. Nouriel Roubini added,
“It’s going to feel like a recession even if technically we’re not going to be in a recession”
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