Saturday, July 19, 2008

Roubini Thinks It Will Be The Worst Since The Great Depression


Nouriel Roubini: As I put it in the interview: ``This is a systemic financial crisis, there is no end to it,'' Nouriel Roubini, professor of economics and international business at New York University, told Bloomberg Television. ``It's a vicious circle between a contracting economy and greater credit and financial losses feeding on the economy.''

Regular readers of this blog are familiar with my views. But here is a summary and significant extended update of my views that this will turn out to be the worst financial crisis since the Great Depression and the worst US recession in decades…

NR is to me, one of the top economists around now with his highly popular website (subscriber only) RGE. His views are worth mulling over. My favourite line by Roubini: ..." it is the continuation of a corrupt system where profits are privatized and losses are socialized" ... now what does that remind you of??? ... Bailout 101 brother...


9 comments:

Anonymous said...

Hold your cash for at least 2 years.

:)

Anonymous said...

figures are mind-boggling.
but how bad will this colossal crisis impact the world economy? ? Really "each country must plot its own survival path"
knowing the "mat sallehs" this will be another "harvard" lesson again to be debated, torn apart, and in the process, earn big bucks for some oppurtunistic "Speakers"
: fellowMichaelian

Tony said...

Remember RAVI BATHRA who predicted similar doom and gloom 2 decades ago?

Avatar said...

Dali,

What are your personal views on what Roubini has said? Do you agree 100% especially in the Malaysian environment.

It's downright scary if what Roubini predicts becomes true.

I believe the global economy will weather this but things will increasingly and incremental become tougher like what we are weathering now.

Anonymous said...

The view that many banks which are in real estate may fold seems odd. Banks which are diligent with credit appraisals and lend to primary borrowers should not normally go bust easily, unless a good number of the borrowers default. I thought the problem is only among bigger banks which "sliced and diced" in the secondary market.

Salvatore_Dali said...

avatar,

i will try to give my views on roubini's views later this week

Avatar said...

Dali,

Looking forward to your views. These predictions are downright scary.

Whilst I would like to brush them off, I think it's better not to be like the ostrich sticking his neck in the sand and hope nothing bad happens.

TheWhisperer said...

I foresee a Mother of All Depression this time..

CWI MALAYSIA said...

Analysis on the Statement by Nouriel Roubini
http://asocialistmalaysia.blogspot.com/2008/10/economy-near-term-financial-meltdown.html