The dire outlook for the US economy....

Back to my recurring theme of arguing that the US economy is heading for recession (last installment here), both Roubini and a Financial Times columnist argue that things are worse, and the economy is heading for a generalised systematic financial meltdown.

At some point, perma-bears like Roubini may overstate their case... and if Roubini doesn't, someone else will. Pessimism is like a commodity: there's a market for pessimistic economic projections. And the markets almost always overshoot. In this case, I'll be surprised if Roubini is not still calling for a worsening recession even once the economy starts to recover.

But, for the record, I think that point is still a long way off....