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Nouriel Roubini said the bubble would burst and it did. So what next?
The Telegraph ^ | 5/23/2010 | Jonathan Sibun

Posted on 05/23/2010 3:49:16 PM PDT by bruinbirdman

~snip~

The 51-year-old, widely known as Dr Doom, is in town to publicise his new book Crisis Economics, a crash course in the financial crisis and what can be done to avoid another.

The book does little to suggest he is uncomfortable with his nickname. Where Roubini is concerned, the great recession has some way to run.

"The crisis is not over; we are just at the next stage. This is where we move from a private to a public debt problem," he says, his speech the mongrel drawl of a man who was born in Turkey to Iranian parents, raised in Israel and Italy and lives in New York. "We socialised part of the private losses by bailing out financial institutions and providing fiscal stimulus to avoid the great recession from turning into a depression. But rising public debt is never a free lunch, eventually you have to pay for it."

As eurozone leaders panic and markets continue to dive, Roubini believes Greece will prove to be just the first of a series of countries standing on the brink.

"We have to start to worry about the solvency of governments. What is happening today in Greece is the tip of the iceberg of rising sovereign debt problems in the eurozone, in UK, in Japan and in the US. This... is going to be the next issue in the global financial crisis."

It already is. Roubini claims to have foreseen it as far back as 2006.

"I was writing about the PIGS [Portugal, Italy, Greece and Spain] six to nine months before everyone else, I was worried about the future of the monetary union back in 2006," he says. "At the World Economic Forum I outraged a policy official by suggesting the monetary union might break up

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Culture/Society; Extended News; Foreign Affairs; Government; News/Current Events
KEYWORDS: economy; europe; recession; roubini; spending; stockmarket

1 posted on 05/23/2010 3:49:16 PM PDT by bruinbirdman
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To: bruinbirdman

There was some story on FR in the last day or so where Spain got bailed out (as in rolling over some paper) over a recent weekend and nobody talked about it on Monday.


2 posted on 05/23/2010 3:59:25 PM PDT by Paladin2
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To: Paladin2
". . . story on FR in the last day or so where Spain got bailed out . . ."

Spain Went Broke on May 7th

yitbos

3 posted on 05/23/2010 4:09:13 PM PDT by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

This guy is the Al Gore of finance.


4 posted on 05/23/2010 4:29:17 PM PDT by ully2 (ully)
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To: bruinbirdman

>> “I was writing about the PIGS [Portugal, Italy, Greece and Spain] six to nine months before everyone else, I was worried about the future of the monetary union back in 2006,” he says.

Can there be any doubt that Dr. Doom is on a book tour?


5 posted on 05/23/2010 4:39:52 PM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: Paladin2

It is just a Band-aid on the problem. They will continue their spendthrift ways and ultimately make it worse by not facing up to the problems today.


6 posted on 05/23/2010 4:42:00 PM PDT by Blood of Tyrants (The US will not die with a whimper. It will die with thundering applause from the left.)
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To: bruinbirdman

later


7 posted on 05/23/2010 4:43:43 PM PDT by quintr
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To: Paladin2

The real Dr. Doom is Marc Faber, not Roubini. Faber was doom for years before Roubini’s fans (mostly ‘tards) tried to appropriate the name.


8 posted on 05/23/2010 10:12:41 PM PDT by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: bruinbirdman
Nouriel Roubini Stock Market 20% Drop Forecast, Time to Buy?

Stock-Markets / Stocks Bear Market
May 23, 2010 - 04:47 AM
By: Nadeem Walayat

According to CNBC, Dr Doom Nouriel Roubini has issued a call that the stock market is expected to fall by as much as a further 20%, not stopping there he also stated that a double dip deeper deflationary recession is likely. Roubini made his call on Thursday with the Dow trading at 10,185.

Roubini stated that he expected the stock market to sell off by 20% over the next few months and a double dip deeper recession. He made some recommendations including buying put options, investing in cash and short-term government bonds of countries such as Germany and Canada, he also expects the Euro and commodities to fall over the next few months.

[snip]

9 posted on 05/23/2010 10:41:06 PM PDT by blam
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To: blam
Not long ago, the only bonds you heard about on CNBC was a PIMCO advert. Everyone was fully invested. Even today, in a down market, they push recommended buys.

But more and more they let money managers tell how much they have in cash and even recommend cash positions. There are more long horizons.

Sure would like my cable provider to offer Fox Biz Channel.

yitbos

10 posted on 05/23/2010 11:05:28 PM PDT by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

It is very educationsl — what he says makes a lot of sense.

One rather unimportant, but interesting tidbit:

” I never prepare a speech, I don’t even have notes. I usually just speak out of my own thoughts; stream of consciousness.”

VS someone, we shall not name, who is incapable of putting a sentence together, unless he reads it from a teleprompter...


11 posted on 05/24/2010 9:35:17 AM PDT by SmartInsight (Bad officials are elected by good citizens who do not vote. ~ G. J. Nathan)
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