Sunday, December 19, 2010

Does 'Dr. Doom' think housing prices have bottomed?

Nouriel Roubini, the New York University economist who gained renown for accurately calling the housing bubble, has purchased a condominium in Manhattan worth $5.5 million, according to a Bloomberg News report.

Public records show Roubini took out a $2.99 million mortgage to buy the condo on East First Street, according to Bloomberg. The apartment is reportedly a 3,700-square-foot triplex penthouse.

Roubini was dubbed "Dr. Doom" because of his many pessimistic forecasts about the global economy. He recently said there is still a risk the U.S. economy could slide back into recession, Bloomberg notes, and last month he said another "disaster" will happen if U.S. house prices fall again and prime mortgage defaults increase.

Does Roubini now think housing prices have bottomed? Bloomberg reached Roubini on his cell phone Friday, but he declined to comment on the condo purchase.

Perhaps the economist has succumbed to "frugal fatigue" -- a term that refers to when consumers, beaten down by the "Great Recession" become tired of fretting about every expense and treat themselves again.

The condo's listing by Halstead Property broker Richard Orenstein certainly makes the home sound alluring.

"Connected by a custom cantilevered steel staircase, each level of this amazing home offers something unique and unforgettable," the listing reads. "On the first floor, you'll find a massive living/dining area bathed in southern light with 11-foot beamed ceilings, exposed brick walls, a wood-burning fireplace, and light from a 50-foot expanse of oversized windows."

By Roland Jones, editor December 18, 2010

1 comment:

Samual said...

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