Dec 17: NOURIEL ROUBINI on his outlook for 2009

Part 1, December 17 2008:Nouriel Roubini, Professor of Economics at Stern School of Business at NYU and chairman of RGE Monitor, expects 2009 to be a year of economic stagflation and recession for most of the global economy. He expects a severe, global recession. Whether or not it persists into 2010 will depend on how aggressive and effective policy actions are: monetary and fiscal policy and efforts to recapitalise financial institutions in the US and elsewhere. He believes there could be a return to positive economic growth by 2010. The European Central Bank should follow the Federal Reserve and cut interest rates further. The US needs a plan to reduce the debt burden to US households. The remedies will cost taxpayers a lot of money.