Dr Doom: The US has not yet woken up to its fiscal nightmare

Nouriel Roubini has warned the market euphoria surrounding the US fiscal cliff deal is unsustainable, arguing the longer-term outlook for the world's biggest economy remains "bleak".

Writing for the Financial Times, the prize-winning economist described the US deal struck by the Democrats and Republicans as "mini" and "no victory". With US policymakers stopping short of including spending cuts in the deal, another crisis is around the corner, stated Roubini (pictured). "If no action is taken by March 1, $110bn of spending cuts will commence, and at about the same time, the US will hit its statutory debt limit, known colloquially as the debt ceiling," he said. "Later in 2013, a bigger debate on medium-term fiscal consolidation will begin. This will lead to anoth...