As we revealed yesterday, Nouriel Roubini, aka Dr Doom, is on these shores.
On Friday morning, the New York University economics professor appeared on Radio 4′s Today programme and gave his verdict/outlook for the UK economy.
You can find the full interview here. It lasts around five minutes.
But if you haven’t got the time, here are the highlights:
- The UK is facing a pretty severe financial and economic crisis.
- The recession (expected to be officially confirmed today) will last two years.
- Many banks in the UK are insolvent, although not the entire system.
- The UK government should be able to afford the cost of bailing out the banking sector – public sector debt vs GDP is not high.
- The UK is closer, economically, to the US than Iceland
- Sterling might fall slowly over time but the risk of a total crash is limited (take that Jim Rogers).
Related Link:
Roubini: Not even half way there – FT Alphaville
The UK has nothing left to sell – Official – FT Alphaville