Roubini Says Risk of Double-Dip Recession Growing

New York, NY, March 10, 2010--The economist known as Dr. Doom is warning that weak domestic economic data along with Europe's debt crisis is increasing the risk of double-dip recession in the U.S.

Nouriel Roubini, who predicted the 2007 financial crisis, said that at best the U.S. economy is headed for a U-shaped recovery this year.

The U.S. faces challenges in the second half, especially as fiscal stimulus measures fade, and "appears far too close to the tipping point of a double-dip recession," he said in a research paper.

Roubini cited low consumer confidence, poor new home sales and construction, and high initial jobless claims.

Despite the fact that the growth in gross domestic product (GDP) was revised upwards to an annual rate of 5.9 percent in the fourth quarter, most of it, around 3.9 percent, was due to inventories, Roubini noted.