Roubini: interest rates plus oil increases could force another drop

It’s true that in my business, I see an increasingly engaged market. People who did not want to talk months ago are at least talking, and often moving, on corporate investments. What a great change from late last year, but it still feels unsure, as if it could all go away with another hit to the market. Looking at the US, it’s annoying to see that the same banks who created the recession and who were saved from failure are now getting greedy and pushing the economy down yet again. Obama is really going to need to quit playing Mr Nice Guy and take a firm position one of these days. Pick an industry or pick a subject, but sitting back like a rudderless ship is not leadership. CNBC:

The price of oil, which is rising too fast, and long-term interest rates that are beginning to creep up are likely to suppress a budding recovery, famous economist Nouriel Roubini, also dubbed “Dr. Doom,” told CNBC Monday.

“I see even the risk of a double-dip, W-shaped recession… towards of the end of next year,” Roubini told “Squawk Box Europe.”

“Oil could be closer to $100 a barrel towards the end of this year, this could be a negative shock to the economy,” he said, adding that other dangers come from long-term interest rates and big budget deficits.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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