In May, Roubini predicted four elements – stalling growth in the U.S., debt troubles in Europe, a slowdown in emerging markets, particularly China, and military conflict in Iran - would come together to create a storm for the global economy in 2013. (via Roubini: My ‘Perfect Storm’ Scenario Is Unfolding Now - Asia Business News - CNBC - CNBC)
- Roubini said that unlike in 2008 when central banks had “policy bullets” to stimulate the global economy, this time around policymakers are “running out of rabbits to pull out of the hat.”
- Bill Smead, CEO of Smead Capital Management, agrees that there is little central banks can do to arrest the global slowdown. Last week, he told CNBC that there is “virtually zero chance” that pump-priming by central banks will succeed, suggesting that policymakers should instead let the economic bust work itself through the system.