Roubini: A bad year for asset prices

Nouriel Roubini sees pain ahead for the global economy and markets, with a slowdown or recession being the possible outcomes in 2016. “I would rule out the recession scenario because that would require a collapse of China, a collapse of emerging markets, and a stall of growth in the US, Europe and Japan. It’s a tail risk, but a 20% probability.” In his view, the risk is that the expansion becomes an economic slowdown, causing the correction in equity markets to become a bear market. This could feed back to the real economy, leading to further slowdown and major falls in asset prices. In this video, he outlines his views on oil, unconventional monetary policy, and technological innovation.