nouriel roubini Dr. Doom is at it again. Nouriel Roubini, an economist best-known for predicting the financial crisis, says a "perfect storm" may be brewing for the global economy. While it's hard to call that good news for the U.S., Roubini says the nation could benefit in this pessimistic scenario: it will continue to serve as the safe-haven for investors. That's particularly good news for U.S. debt, which is facing a tough road over the next few months as Congress seeks deficit reduction and debates raising the debt ceiling. The "Perfect Storm" Roubini sees at least three significant problems looming outside of the U.S., according to a Bloomberg report on his recent comments during an interview in Singapore. First, China's economy might slow down.
He says there's a "meaningful probability" of a hard economic landing there. Second, Europe's debt restructuring could stunt growth in the region. Finally, He worries about stagnation in Japan. If all of these problems occur simultaneously, then the global economy is in for a pretty rough ride. But Clear Skies for Treasuries? The U.S. is not insulated from problems in other nations. Exports, for example, will be directly affected if the global economy slows. But there's at least one way in which the U.S. would benefit: investors would flee to the safest assets out there, which would continue to be U.S. Treasuries. Kevin Lim at Reuters also reported on the Roubini interview, saying:
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