The global economy still risks a double-dip recession if oil prices spike toward $100 pb and the shock would be similar to the one felt last year when oil hit $145+, Nouriel Roubini, professor of economics and chairman of RGE Monitor, told CNBC.
While the risk of a depression has been practically eliminated by the massive govt. liquidity injections, “we are [still] in the middle of the worst recession in 60 years,” Roubini, who now prefers to be called “Dr. Realist vs Dr. Doom” said on “Squawk Box.”
Roubini also noted during his interview that the rallying stock market may have gotten ahead of itself. “Asset prices should go higher, the question is too much, too soon, too high,” he said. ” In my view there is the risk of a correction,” he added.
According to Roubini, financial institutions still face some downside risks.
