Tuesday, Jan 20, 2009

Roubini: formerly left field, now mainstream

Telegraph: US banking system effectively insolvent

Losses in the US financial system may reach $3.6 trillion (£2.6 trillion) before the credit crisis is over, suggesting the country's banks are "effectively insolvent", according to the man who predicted the current economic meltdown.

Posted by gardeniadotnet @ 11:09 PM (367 views) Add Comment

2 Comments

1. drewster said...

Dr Doom has diagnosed the illness, but does he have a cure?

Looks like this was just one part of a longer speech. Here's his view on oil:

Oil price scrapes barrel, says Nouriel Roubini

  • "Nouriel Roubini, the New York University professor who predicted last year's economic and stock market meltdown, has forecast that oil prices will trade between $US30 and $US40 a barrel this year [2009]."


    • Here's his view on stockmarkets and FX:

    Synchronised Downturn Inevitable: Roubini
  • The global equity markets which have already lost about $30 trillion since the onset of the crisis are expected to fall further 20 per cent in 2009, according to Roubini. But he prefers investing in conventional and renewable energy, technology, and infrastructure sectors as these would be first to rebound once global economy recovers.

    The public spending plans announced by governments world-wide to prop up the economy could indeed stymie the recovery as excessive government borrowing could keep out the private sector from accessing the capital markets, he said. Roubini added that many governments are indulging in “socialisation of private sector losses” by taking toxic assets on their books but said that this move might make many sovereigns insolvent if the planned recovery goes awry."


    • That last line is revealing - "this move might make many sovereigns insolvent" - a thinly veiled reference to Britain, no doubt!

    Wednesday, January 21, 2009 12:42AM Report Comment
     

    2. techieman said...

    He gets my vote. i

    Wednesday, January 21, 2009 08:07AM Report Comment
     

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