Thursday, July 26, 2012

Roubini: US Rebound a 'Fairy Tale,' Stocks to Fall Read more: Roubini: US Rebound a 'Fairy Tale,' Stocks to Fall

U.S. stocks have risen in recent years but mainly due to the Federal Reserve's moves to stimulate the economy.

The Fed may move again to prop up the country and stave off recession, but results will be weak and stock prices will plummet when the monetary sugar rush ends, said New York University economist Nouriel Roubini.

Previous calls for U.S. gross domestic product growth of around 3 percent this year have been off, with forecasts being slashed.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

"The first-half growth rate looks set to come in closer to 1.5 percent at best, even below 2011’s dismal 1.7 percent," Roubini wrote in a Project Syndicate column.

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