Posts
http://money.cnn.com/
The video is called "Nouriel Roubini fears a new crisis."
Last Tuesday Tommy brought up the point about the possibility of America going into a second recession based on historical events. Although it is another gloomy video about the state of our economy, I thought it was ironic and humerous that Nouriel Roubini (Professor of Economics-NYU Stern School of Business) expressed this as a reality. Do you think this could actually happen?
Subscribe to:
Post Comments (Atom)
It's funny that he didn't give an actual percentage when the reporter asked for one. But he brings up great points and I am glad his voice is being heard. However, I don't think anyone will actually listen to him. What he basically said is it is only a matter of time until we go into another asset bubble and face another recession. I think his predictions are valid, but I think they will be on a smaller scale. At least that is what I hope...that we can learn from our mistakes and fix our policies. Maybe a return to glass steagall is necessary...
ReplyDeleteI agree with Mr. Roubini that a new crisis is a strong possibility. The United States government really missed the boat on real reform and the large banks will go back to their old practices. I recall from the reading that the Great Depression was spurred by the Panic of 1907 and it took until the 1930s for real reform to occur. Hopefully we won't be seeing the Second Great Depression in 2020 but it seems almost inevitable if Americans don't push for seriously changes to current banking practices on Wall Street.
ReplyDeleteI recall from 13 Bankers that after the savings and loan crisis of the 1980s that was attributed to among many things, rampant fraud, that just a few years later, deregulation began with acts that reduced banking restrictions and eventually led to the repeal of Glass-Steagall. We have seen this before and it seems clear we missed our chance to bring the hammer down so to speak. I unfortunately see a nasty cycle beginning to occur here.
ReplyDeleteShort answer: Yes, we've had a shadow recession before, and it can happen again. This time is no different.
ReplyDeleteI generally agree that this is possible, but that doesn't mean it is probable. We have to remember that there are some economists who hold onto one view no matter what. They are absolutely wrong 99% of the time. Mr. Roubini is one of them. He has been screaming from the top of his office building that the financial world will collapse SOON for over a decade. Just important to put his prediction in context.
ReplyDelete