Roubini Says Stocks Will Drop as Banks Go ‘Belly Up’ (Update2)

By Michael Patterson and Maithreyi Seetharaman

March 26 (Bloomberg) -- U.S. stocks will fall and the government will nationalize more banks as the economy contracts through the end of 2009, said Nouriel Roubini, the New York University professor who predicted last year’s economic crisis.

“The stock market is a bit ahead of the real macroeconomic and financial news,â€