Roubini: It's a Pretty Ugly Picture; Canada, Germany and U.S. Bonds Will Be A Haven

Nouriel Roubini said today that government bonds of countries such as Canada, Germany, and the U.S. will be a haven from "increasingly volatile markets in coming months".

Speaking in France, Roubini added that “It is going to be a period of economic and financial fragility,” “The short-term and long-term debt of countries not yet subject to sovereign debt concern will be havens,”.

Furthermore, he added that the global economy will slow down in the second half as a result of deficit-cutting measures adopted byEurope (well, assuming they actually occur, because everyone nows what would happen if they actually go ahead).

“The next few weeks and months will be a time of volatility as the market surprises on the downside,” “It’s a pretty ugly picture. The macro news from the U.S., Europe, Japan and even China is disappointing. Credit spreads will widen.”