Nouriel Roubini: We're Headed For A 'Growth Recession,' 400 Banks May Fail (VIDEO)

Are we headed into a "growth recession?"

Speaking with CNBC Europe from Lake Como, Italy, Nouriel Roubini, the widely followed chairman of Roubini Global Economics, predicted that the U.S. economy will continue to grow modestly, but that it will continue to feel very much like a recession. "The second half of the year is going to be worst than the first," Roubini. "All the tailwinds will become headwinds"

By the end of the year more than 400 of the 800-plus institutions identified as "problem" banks will fail, Roubini said.

The U.S. economy may be technically growing, he added, but has hit "stall speed." GDP growth below 1 percent, without hiring and an increase in demand, Roubini said, is essentially a "growth recession."

The world economy will not be able to "decouple" from the U.S. consumer, he said. "In Europe, Germany is strong but the rest of the continent is pretty dismal. The rest of the world cannot cope without the prop of the U.S. consumer."

As for solutions, Roubini advocated further spending. "What we need is credible spending plans over the medium term on health care, welfare and retirement age," Roubini said. "This will create a fiscal constraint lasting well into next year."

WATCH the full interview with CNBC: