Roubini: Global Depression Cannot Be Ruled Out

Democracy Now had a cheerful little tidbit yesterday:

New York University economics professor Nouriel Roubini is predicting that the US and global economy is heading towards a near-term financial meltdown. Roubini, who is often credited with forecasting the current crisis, writes, “At this point severe damage is done and one cannot rule out a systemic collapse and a global depression. It will take a significant change in leadership of economic policy and very radical, coordinated policy actions among all advanced and emerging market economies to avoid this economic and financial disaster."

World Bank President Robert Zoellick warned developing nations may be particularly hard hit by the market meltdown.

Robert Zoellick: “The events of September could be a tipping point for many developing countries. A drop in exports will trigger a fall-off in investments. Deteriorating financial conditions, combined with monetary tightening, will trigger business failures and possibly banking emergencies.”