Whom to believe ?......Nouriel Roubini or Marc Faber......

Global recession coming to an end: Nouriel Roubini


Economist Nouriel Roubini, the Chairman of RGEMonitor.com and one of the few people who foresaw the US housing bust that preceded the economic crisis of 2008-09, says the global recession is coming to an end. He, however, added that, contrary to consensus view, it would be a “weak, anemic, sub-par recovery,” and not a V-shaped one.
U-shaped recovery on cards
Roubini, also dubbed Dr Doom for long warning the advent of an economic crisis, said the labour market and consumer spend in the US remained weak. Capacity utilization in the corporate was below par as well, he said, and added that the damaged financial sector would result in credit growth being limited and investments not growing.
Roubini, however, did not rule out the chances of a double dip recession if private demand didn’t recover, the stimulus went away but oil prices continued to climb to USD 100 per barrel levels. “It's not my main scenario but there is a risk of that sort. The main scenario is one of anaemic recovery. I don't understand how this is going to be a rapid recovery to potential growth or above potential growth.”
US faces Catch-22
The US faced a dilemma over the direction of its fiscal and monetary policy, he said. “If you take away the monetary and fiscal stimulus away too soon, you end up like Japan 1998-2000 or the US in 1937-1939 — you have a double dip [into recession]. Taking the stimulus away right now when the private demand is still weak is a mistake,” he said. “If you maintain the stimulus, monetary and fiscal, and you have a runaway budget deficit and you've to keep monetising them, eventually that will lead to an unsustainable fiscal policy, increase in expected inflation and that could again crowd out recovery.”
The wall of liquidity chasing risk assets around the world was both good and bad, he said. “Some of it is good news because it leads to higher stock prices and some of it is dangerous as it leads to a sharp increase in all energy, food and commodity prices. There's going to be a negative shock on the commodity importing countries.”
Markets may correct
Stock markets around the world, which have run up heavily on hopes of a quick recovery, will have to correct if the flow of macro-economic news is not as good as expected, Roubini said.


My Commnets:
In a week we saw that two masters came out with entirely opposite view.....whom investor need to beleive.
Going by what I am writing , I am with Noureil Roubini and not with Marc Faber....