From Davos, warnings of too much reform

DAVOS, Switzerland, Jan. 27 (UPI) -- Financial experts at the World Economic Forum in Davos, Switzerland, said the economic recovery would be slow and financial reform could be misguided.

At the conference that attracts many of the world's economic heavy-weights, University of Chicago School of Business professor Raghuram Rajan said world leaders were "in danger of attacking the most visible problems instead of doing what we need to do."

"We could over regulate and go too far and whittle away too much," he said.

Nouriel Roubini, chairman of Roubini Global Economics Monitor, USA, said he agreed with a White House initiative supported by former Federal Reserve Chairman Paul Volcker, that "financial institutions that are too big to fail should be broken up," but warned regulations in developed countries applied to emerging economies would be counter-productive.

"The greatest danger" is for emerging countries to imitate reforms elsewhere and stifle growth, he said.

Roubini also said it would be a "U-shaped recovery," as opposed to a faster V-shaped recovery.