Roubini's Read: Has Dr. Doom Capitulated?

Last Updated Jul 17, 2009 2:21 PM EDT

The explanation for yesterday afternoon's rally was obvious: Nouriel Roubini, economist, professor and lead Cassandra of the housing/credit crisis and recession, had donned rose-colored glasses. Reuters reported that Roubini said "the worst of the turmoil has passed."

Hooray! If Dr. Doom says we're done, then the path is clear, right? Not so fast--Roubini quickly followed up that report with this statement: "It has been widely reported today that I have stated that the recession will be over 'this year' and that I have 'improved' my economic outlook. Despite those reports ... my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context."

Harrumph! So we're not done yet?

I appeared with Lakshman Achutan, Managing Director of the Economic Cycle Research Institute, on CNN American Morning to discuss where we are and what to expect going forward. Although Lakshman is a bit rosier than I, we agreed that the economy no longer feels like it's abutting the abyss. That said, I can't underscore enough how the bottom in the economy is not a place--it's a process that is likely to continue for months.

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    Jill Schlesinger, CFP®, is the Emmy-nominated, Business Analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and Chief Investment Officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.