LAKE COMO, Italy - September 7, 2010 - Even if the U.S. and European economies manage to avoid a double dip, it will still feel like a Depression, while more than half of the 800-plus U.S. banks on the "critical list" are likely to go bust, according to renowned economist Nouriel Roubini of Roubini Global Economics.

The second half of the year will remain weak as tailwinds become headwinds, Roubini told CNBC on the shores of Lake Como, Italy at the Ambrosetti Forum Economics Conference.

"In the second half, fiscal policy becomes a headwind, no more cash for clunkers," Roubini said. "The positive scenario is that growth will be below par."

Roubini recently said the chance of a double-dip Depression in the U.S. was now more than 40%.

"The big risk is that there will be a downturn in markets that could impact the bond, the equity and the credit markets," he said.

“Job losses have been higher; the U.S. jobs number will show that. There is no private sector jobs growth," he said. "Consumption is weak, exports are weak and housing is weak."

"If there (are) no final sales and no final demand(s), companies will not invest," he added.