Roubini: 'Green shoots in the economy' but also 'yellow weeds'

Nouriel Roubini, who was so far out front among the pack on the current economic crisis that one might think he had also invented a time machine, takes a more sober look on the impact of the stimulus plan and the hopes for a rebound:

Reuters Investment Outlook Summit: "Roubini, who rose to prominence for predicting the global credit crisis, tore down the "green shoots" theory that a rebound is imminent, saying there was a significant risk of a "double-dip" recession where the economy expands slightly only to begin contracting again.

"In addition to green shoots there are also yellow weeds," he told the Reuters Investment Outlook Summit in New York.

He pointed to the growing divergence between business sentiment surveys, which have been improving in recent months, and industrial production, which is down sharply and receded another 1.1 percent in May.

Details here: http://www.reuters.com/article/InvestmentOutlook09/idUSTRE55F4ET20090616