Famous
economist Nouriel Roubini is of the
opinion that the US growth will be barely 1.7 per cent in 2013, adding that
there is a high probability for the USA going over the fiscal cliff. He also said that if this happens, the 2 sides will
be forced to reach an agreement by the market reaction.
When
asked about the USA, Nouriel said that in the long term he
thinks that the U.S. fundamentals are much stronger than other countries but in
the short term he thinks that the country will have another year of anemic
economic growth.
Moreover, Roubini
said that he really thinks that there is a housing
recovery, adding that despite this, those who are more optimistic on housing recovery will be proven wrong
in 2013.
In
terms of positiveness, Roubini
pointed out a couple of things – a housing recovery, reshoring of
manufacturing, revaluation of the shale gas and some job creation and the help
of quantitative easing 3. Furthermore, he said that even if the USA avoids the fiscal cliff, a GDP of 1.4 per cent is expected and a 1.25 per cent
drag on growth in a barely growing economy.
Roubini
has also highlighted some problems and said that tax increases are vetoed by
Republicans and entitlement reform is not wanted from the Democrats. Moreover,
he talks about issues in the budget for 2013,
a potential debt ceiling debate and another one about fiscal consolidation and
another one about fundamental tax reform.
When
Nouriel Roubini was asked whether he
would accept a treasury secretary if President
Barack Obama were to offer it, he said that Obama would not call on him. As a whole, Roubini said that he enjoyed being involved in politics for 2 years
but not that he is a public intellectual he can provide input to debate.
