Nouriel Roubini: The Euro Zone is "In Denial" and the US is Postponing Needed Financial Reforms

Are things getting better or worse in Europe? And is the US headed in the right direction? Nouriel Roubini says no.

Noted economist Nouriel Roubini, credited for predicted the financial crisis, made a plea to policymakers to take tough action needed to address current economic problems, in an article published on the Financial Times website.

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 "The euro zone has been in denial of the fact that some of its member states are insolvent, as well as unable to survive and grow in a monetary union," he wrote.

In the U.S., fiscal consolidation was postponed and other structural reforms — such as investment in infrastructure, skills, and education, as well as changes to energy policy, all measures needed to restore growth — were also postponed, Roubini wrote.

As for China, it has "persisted in its weak currency, to support its export and investment-led growth model where savings are too high and consumption too low," the economist, dubbed by some in the media as Dr. Doom for his gloomy scenarios, added.

Roubini: Euro Zone 'In Denial,' US Postpones Reforms - EU Business News - CNBC

CNBC: Investors Lose Faith in Stocks, Are Pulling BIllions in Dollars Out of the Market

Time to get out of the market??

Investors appeared to have lost faith in stocks this year.  Just over a week ago, equity mutual funds globally had the second-biggest one-day outflow of money in 2011, capping four straight weeks of net redemptions, according to data from EPFR Global.

Worldwide, investors have yanked $34 billion out of equity funds this year and put $75 billion into bonds.

In the U.S., stock funds, including both exchange-traded funds and mutual funds, squeaked out a miniscule $4 billion net inflow this year, while fixed income-focused managers collected a monster $86 billion, according to EPFR.

Burned by two bubbles in the last decade and facing the second global financial crisis in three years, investors simply don’t have the risk appetite for stocks.

No Stocks Under Tree: Investors End Year Fleeing Equities For Bonds - Fast Money - CNBC - CNBC