Bad Forecasts For US Economy
Well-known US economist Nouriel Roubini is predicting that the compromise that has been reached between President Obama and the Congress to prevent a financial collapse is a temporary measure. Very soon, the collapse will inevitably happen, the economist believes.
In an article published by Mr. Roubini in the London newspaper “The Financial Times” on Thursday, he predicts that the crisis will take place in two months from now.
He says that if a new compromise is not fond by March 1, the US budget expenditures will have to be cut by $ 110 bln. Besides, by the beginning of spring, the amount of the US stabilization program will reach 1.4% of the GDP. As a result, stagnation in the US economy is inevitable, Mr. Roubini predicts.