Your Daily Dose Of Doctor Doom

Roubini today:

The United States, Europe and Japan still face the possibility of a double-dip recession and at the very least will experience below-potential economic growth for the next couple of years, economist Nouriel Roubini told CNBC Monday.

By contrast, China and India have the best chance of leading the recovery, Roubini said.

The double-dip is still possible because of very large budget deficits that are being monetized by monetary-policy authorities, Roubini, co-founder and chairman of RGE Monitor, said, speaking at the Diggers and Dealers mining conference in Kalgoorlie, Australia.

If central banks continue to monetize the deficits, "long-term bond yields may go higher, and they may crowd out the economic recovery leading to a double dip," he said.

For the U.S., Roubini reiterated his position that the recovery would only start at the end of this year, with 1 percent growth in 2010 and 2011, as opposed to 3 percent potential.

With weakness in the labor market and housing market and consumers and production still not recovered, "I'm very cautious about the United States," he said.

Sounds about right to me, a recovery so weak that it feels like a recession, and it'll drag on for years. That is, if we don't hit a secondary recession. And the way things are going, I wouldn't be surprised if that happens. The stock markets are way oversold right now. I just don't see where the bull run is coming from other than bank profits we know are nothing more than a back door bailout.