Dr. Doom: No longer can policymakers take rabbits out of hats

Nouriel Roubini, nicknamed Dr. Doom (in picture) after releasing critical economic views, has recently said the most advanced economies are on the brink of a double-dip recession due to massive volatility and sharp equity-price correction. Now a combination of high oil and commodity prices, turmoil in the Middle East, Japan’s earthquake and tsunami, eurozone debt crises, and America’s fiscal problems (and now its rating downgrade) have led to a massive increase in risk aversion, Roubini writes on Economonitor. “Even fast-growing emerging markets (China, emerging Asia, and Latin America), and export-oriented economies that rely on these markets (Germany and resource-rich Australia), are experiencing sharp slowdowns,” according to Roubini. No longer can policymakers take rabbits out of hats. Now they have run out of rabbits, says Roubini. Read the full article, titled Is Capitalism Doomed? editor@romania-insider.com