Roubini: Worst Recession in 40 Years – P2
Roubini Sees Worst Recession in 40 Years, Stock Drop (Update3) Oct. 14 (Bloomberg) — Nouriel Roubini, the professor who predicted the financial crisis in 2006, said the US will suffer its worst recession in 40 years, driving the stock market lower after it rallied the most in seven decades yesterday. “There are significant downside risks still to the market and the economy,” Roubini, 50, a New York University professor of economics, said in an interview with Bloomberg Television. “We’re going to be surprised by the severity of the recession and the severity of the financial losses.” The economist said the recession will last 18 to 24 months, pushing unemployment to 9 percent, and already depressed home prices will fall another 15 percent. The US government will need to double its purchase of bank stakes and force lenders to eliminate dividends to save them from bankruptcy, Roubini added. Treasury Secretary Henry Paulson said today he plans to use $250 billion of taxpayer funds to purchase equity in thousands of financial firms to halt a credit freeze that threatened to drive companies into bankruptcy and eliminate jobs. “This will be the first round of recapitalization of the banks,” Roubini said. “The government has to decide to intervene much more directly in the provision of credit and the management of these companies.” The Standard & Poor’s 500 Index rallied the most since 1933 yesterday, rising 12 percent, on the government plan to buy stakes in banks and a …
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No change in financial reform for wall street after all this greed scheme is coming to light. what reform has come about? So, same old bull#^*** once again . Structured blackmail from the honchos holding the 45 to governments head by embedded wallstreeters.The smartest people at the top have learned nothing once again other than how to get richer and kill the common man. HEADS NEED TO ROLL! Remember the storming of the Bastille? Wasn’t such a bad idea after all!
Were you talking about the 9-12er movement? When you say Staggering,
is it because they are drunk? dumb?
brain washed? or all of the above?
10/4/09 The unemployment rate is almost 20%.
by the end of this summer Americans will be staggering in the streets
We Can Help You Save Your Home From Foreclosure Go To homesaver(DOT)tk
kind of funny seeing the dow jones go and at least stay in the positives
….and keep your gun loaded and handy. Just in case.
if u r horny visit my profile! b
You can say whatever you want, but Roubini has been calling the plays and now has the winning score. Stock up on food and household items now because inflation will bring up the costs over the next year; get cash out of banks and keep it safe at home because FDIC has 10 years to pay off your claim; pay off your debts, if you can; get a programmable thermostat for your furnace; and just get ready for what is to come.
There will be extreme inflation before the deflation sets in. The more money the FED prints, the more intense both will be. NR calls for 3 trillion in de-leverageing, the bailout of 900 billion is not enough to equate out that loss, plus the loss of confidence in all assets classes. All airlines, all car companies will declare bankruptcy in 2009 as well as GE. Keep cash, buy gold and food stocks and wait for a recovery in 2010, if at all.
That guy’s shirt and tie totally match the background.
I dont know if Roubini is a genius, its like the emperors new clothes it did not take a genius to see he was naked Roubini is just calling it as he sees it, his genius is that he takes an academic view of the market not as an investor. He saw what happened in the past 10 years as illogical from a purely economic perspective, his peers were blinded by greed.
4. Rating agencies
5. Fraud
I admire his analyses, but
NR’s solutions are totally wrong:
This was the problem:
1. Lending to people who should not get loans, which was encouraged by politicians both Republican and Democratic.
2. Easy credit and money by an artificially low interest rate from the FED.
3. The implicit government guarantee which became explicit from the GSE’s Fannie Mae and Freddie Mac
Deflation at this point is unstoppable. More intervention=more problems. See above!
NOT INVESTMENT ADVICE.
How can anyone know where to invest (meaning personal education, entrepreneurship, money, everything!) when the government constantly changes the rules?
In Soviet America, MONEY SPENDS YOU! VHAT A COUNTRY! (apologies to Y. Smirnoff)
Why work hard, why be responsible, what do you teach your kids?
What a bunch of Bull zszhit!
you’re nuts..nouriel is a fucking genius
I would like to see him explain WHY massive PRICE inflation will not result from the massive government bailouts and creation of credit out of thin air. The relationship is easy to see.
Nouriel is a great “Keynesian” economist.
Keynesianism SUCKS.
The IMF,the World Bank,and the FIDC are the real Masters Of The Universe…Can you dig it???….By the way,the U.S. dollar is losing its value day by day…
Corgi- Media show and go flash and pizazz cull and control the small minded masses these politicians are not the real rulers or lawmakers . He who has the money makes the rules. McCain or obama are only sheeple figureheads.
It was not so long ago some Republican idiot said the recession was in people’s minds! ALso, Old Man McCain, only a few weeks ago said the U.S. economy if fine.
And there’s people who want these fuckwits back in??