Thursday, April 10, 2008

Recent bounce 'sucker's rally': economic guru - Nat Post April 10th

Nouriel Roubini says the United States is facing a 12-to 18-month recession that will make a mockery of the recent stock market bounce and the notion of global economic decoupling, cause commodity prices to slide 20% to 30% and hit Canada hard.

"I see the stock market rally as being the last leg of a sucker's rally --essentially people believing the Fed can rescue the economy," Mr. Roubini said in an interview yesterday. "Once the flow of market and financial news gets worse and worse, the expectation of the Fed rescuing the economy is going to be dashed, and the stock market is going to plunge much more."


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