Nouriel Roubini There are already elements of fragility,” he said. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest.”Roubini still believes we may escape the worst of this scenario, with the global economy bumping along, with weak growth.One of the big threats Roubini believes the world is facing is a hard landing in China. He sees that country's non-performing loan problem expanding, if it does not quickly reshape its economy around domestic demand.
2012 is a US presidential year but if politics could really control economics then we would be living in a land of perpetual riches with never a change of government. You could say the same about the World Cup in the UK next year.Politicians surf on waves of public opinion and economic forces. They can do harm but seldom good, and can never command the tide to turn back. So what reasons would ArabianMoney have for seeing a perfect storm coming rather earlier than Dr Doom suggests?It is really just a reading of global financial markets which seem to be falling apart after a very long rally. This partly predicts and will partly cause an economic downturn.
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