Dr Doom Roubini says US set for 'fiscal train wreck'

Nouriel Roubini, the economist dubbed ‘Dr Doom' for forecasting the sub-prime crisis, believes the US economy is a "fiscal train wreck" waiting to happen.

In a commentary for the Financial Times, Roubini says the US risks a period of stagnation - highlighted by minimal growth, high unemployment and deflationary pressure. Roubini warns the US is on "unsustainable fiscal course" and reform is unlikely to be on the agenda following next week's mid-term elections, in which the Republican Party appears set to dominate. "Fiscal policy should be doing some of the lifting to prevent a double dip recession," Roubini says. "The risk ... is that something on the fiscal side will snap ...