Monday, March 18, 2013

Nouriel Roubini: Brace for Market Correction Later This Year

His comments come as investors eye the release of non farm payrolls data in the U.S for further clues on the health of the economy.

Speaking at the 2013 Ambrosetti Workshop, Roubini - the co-founder and chairman of Roubini Global Economics dubbed Dr Doom for his pessimistic forecasts - warned that despite some positive indicators for growth, a number of key issues would hold it back.

"These taxes, taxes for the rich are going to significantly reduce disposable income and retail sales have been a disaster. And there are already signals of consumption growth slowing down as well as the sequester and the fiscal drag this year will be 1.5 percent of GDP (gross domestic product) for an economy that was barely growing last year," he said.

The sequester refers to a series of spending cuts and tax increases which began to take effect last Friday aimed at reducing the budget deficit.

By: Reported by Ross Westgate; Written by Shai Ahmed 

Published: Friday, 8 Mar 2013 

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