Tuesday, Jul 22, 2008
this is like the Great Depression. “We haven’t seen this kind of travail in the financial markets since the 1930s,” he said.
New York Times: Uncomfortable Answers to Questions on the Economy
More than two years ago, Nouriel Roubini, an economist at the Stern School of Business at New York University, said that the housing bubble would give way to a financial crisis and a recession. He was widely dismissed as an attention-seeking Chicken Little. Now, Mr. Roubini says the worst is yet to come, because the account-squaring has so far been confined mostly to bad mortgages, leaving other areas remaining — credit cards, auto loans, corporate and municipal debt.
Mr. Roubini says the cost of the financial system’s losses could reach $2 trillion. Even if it’s closer to $1 trillion, he adds, “we’re not even a third of the way there.”
Posted by malct @ 11:55 AM (458 views) Add Comment
6 Comments
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1. japanese uncle said...
Further 20% house price drop will offset every effort made so far by the banks. Scratch from SQ 1. Then banks will have to write off phenomenal amount again, and say we have come to the break-even after writing off such and such. Then further 20% hp drop, Again scratch from SQ1. This is the deadly spiral to hell that will never fail to catch up with any economy that has danced a bubble polka of death. Quite like the girl in the film 'Ring', who saw the video.
2. sold 2 rent 1 said...
Gold up at $974
Oil hanging onto $130
I still think gold could be brought down temporarily when oil takes another plunge.
3. Happy Mondays said...
@japenese uncle
Quite like the girl in the film 'Ring', who saw the video?
Fantastic film! i think its the one where she crawls out of the tv set? a bit like all the property porn gurus and celebs now, but these one's are really scary...
4. beartil2010 said...
I love it
'By the reckoning of Economy.com, enough houses are on the market to satisfy demand for the next two-and-a-half years without building a single new one'
Shortage, Shortage... oh where are thou Shortage?
5. japanese uncle said...
Happy Monday
I must mention Ring (I saw original Japanese version on TV) is a bit shallow, and not a particularly excellent film, but certainly one of the scariest. I know Ring is quite popular in UK., though (Every DVD shop sells it). I like Ugetsu (by Mizoguchi), or Kwaidan (by Kobnayashi) much better (These are really classic horror stories), or even Shining (by Kubrik).
6. Happy Mondays said...
japenese uncle
I shall look those up, i am a bit of a world movie buff and asia extreme come out with some classics, ,(Bangkok dangerous,old boy,Battle royal) the shining was also a great movie as you say! Let's hope we do not get to many people turning into jack nicholson as they fail to keep up with mortgage repayments and ever increasing inflation!