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Nouriel Roubini: "We Are Going To See A Trainwreck If U.S. Doesn't Adress Fiscal Problem"
Benzinga ^ | January 26, 2011 10:49 AM | Scott Rubin

Posted on 01/26/2011 9:53:06 AM PST by Ernest_at_the_Beach

Nouriel Roubini appeared on Bloomberg Television with Tom Keene this morning from the World Economic Forum in Davos, Switzerland. Along with Gerard Lyons of Standard Chartered, Roubini discussed the global economy, emerging markets, and the fiscal crisis in the U.S. Roubini said that we're going to see a "trainwreck" if the U.S. doesn't "start to address this fiscal problem." He also said that "the bond vigilantes have not woken up in the U.S. in the same way as in the euro zone." Highlights can be found below, courtesy of Bloomberg Television. The video can be seen here.

Roubini on the global crisis:

"Today there is a global economic recovery, but my view is still two-speed. Emerging markets, China, India, Asia, even Latin America are doing well. I
think the recovery in the advanced economy is making us apart. There is still balance sheet repair in both the private and public sector. You see this especially in the periphery of the euro zone and Japan, the U.K. is almost double-dipping. Even in the U.S., the recovery is still weak. The banks are doing better of course--they're being built out, they're being recapitalized at least in the United States in the case of the euro zone, but we still have significant problems in Ireland, Spain, and so on. The global outlook is going to affect what happens to the banks. In the U.S., the down side risk is coming from housing double dipping, unemployment being high, the federal deficit and it's taking a load on local deficits. Some of the banks are going to be still struggling."

On the fiscal crisis in the U.S.:

"We're not doing much about the budget deficit.

(Excerpt) Read more at benzinga.com ...


TOPICS: Business/Economy
KEYWORDS: climatechange; economy; energy; globalwarminghoax

1 posted on 01/26/2011 9:53:10 AM PST by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

Yeah, like getting a new engineer.


2 posted on 01/26/2011 9:54:13 AM PST by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: Ernest_at_the_Beach

Well he say something about trains in the SOTU.

A high-speed trainwreck for 80% of America, something like that?


3 posted on 01/26/2011 9:55:11 AM PST by agere_contra (Historically every time the Left has 'expanded its moral imagination' the results have been horrific)
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To: Puppage

Yeah, I’m sure fiscal repsonsibility is just another election away. Always is, so it seems.


4 posted on 01/26/2011 9:55:33 AM PST by Wolfie
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To: Wolfie
Yeah, I’m sure fiscal repsonsibility is just another election away. Always is, so it seems.

LOL. Fair enough.

5 posted on 01/26/2011 9:56:46 AM PST by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: Puppage

That works for me!


6 posted on 01/26/2011 10:01:39 AM PST by Ernest_at_the_Beach ( Support Geert Wilders)
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To: agere_contra
Photobucket

(couldn't resist)

7 posted on 01/26/2011 10:05:53 AM PST by Roccus (Joe Biden.....America's only living brain donor.)
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To: Wolfie
Most politicians and nearly all of the general public just don't seem to get the magnitude of the problem. Quibbling over whether we freeze the federal budget at 2008 levels or 2006 levels is ridiculous when in reality we need to be eliminating entire departments (Education, Energy, and most if not all of the EPA for a start).

The Tea Party movement that propelled Republicans to power in 2010 was primarily based upon a recognition of the need to return the federal government to its Constitutionally-mandated "box." If we're going to move even modestly toward that goal, we're going to have to make cuts that even most Republicans seem to believe are unthinkable. If we can't make these decisions now, in the depths of the worst financial crisis of most of our lifetimes, when will we?

8 posted on 01/26/2011 10:06:25 AM PST by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.)
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To: Roccus

I love that picture, thanks.


9 posted on 01/26/2011 10:10:14 AM PST by agere_contra (Historically every time the Left has 'expanded its moral imagination' the results have been horrific)
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To: Ernest_at_the_Beach

But hell yeah, according to the AnnointedIdiot, let’s spend....errrrrrrrr, “invest” ....more money that we do not have... =.=


10 posted on 01/26/2011 10:11:15 AM PST by cranked
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To: agere_contra
The French are fun, aren't they?

Photobucket

BA - DA - BOOM - PIIISSSHHH

11 posted on 01/26/2011 10:20:24 AM PST by Roccus (Joe Biden.....America's only living brain donor.)
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To: noiseman

We won’t. The people in charge have a plan: Be gone with their wealth before it all comes down.


12 posted on 01/26/2011 10:22:25 AM PST by Wolfie
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To: noiseman
Most politicians and nearly all of the general public just don't seem to get the magnitude of the problem.

I remember early in The Won's term, he made a big deal about having Cabinet members "save $100 million".

Not mentioning that saving $100 million on a $3.5 trillion budget is the equivalent of taking 0.001 inch off a yardstick.

13 posted on 01/26/2011 10:34:16 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Ernest_at_the_Beach
Fair And Balanced:

The Financial Crisis, The Worst Is Behind Us

To spare you the suspense, the U.S. experience is right in line with the averages of those 18 other crises. That surprised me, but it's true, as I'll show.

If the outcome in the U.S. is anything like the outcome in these other 18 instances, the worst is behind us.

14 posted on 01/26/2011 11:01:06 AM PST by blam
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To: Roccus

I like that


15 posted on 01/26/2011 11:20:20 AM PST by phockthis
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To: blam
What...

You mean the Republicans are gonna save us?

16 posted on 01/26/2011 11:24:55 AM PST by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
Most politicians and nearly all of the general public just don't seem to get the magnitude of the problem. Quibbling over whether we freeze the federal budget at 2008 levels or 2006 levels is ridiculous when in reality we need to be eliminating entire departments (Education, Energy, and most if not all of the EPA for a start).

Yes, it's so large it's hard to believe. Here's the Wikipedia picture of the budget.

Now, we need to cut $1.5 Trilion out to get a balanced budget. Cutting ALL discretionary spending (ie: ending FBI, CIA, zero Hwy. Funding, closing Agriculture Department, etc.) only gets you $437 Billion in savings. Less than 1/3 of what is needed. You could throw in the ENTIRE Defense Department and you still wouldn't get there!!

Essentially the mandates and pensions of FedGov have bankrupted us.

My plan, put bluntly, is to screw the poor. It's either that or screw the middle class. My harsh take is that there is a higher moral obligation for FedGov to pay off SSI to those who have diligently contributed for decades than it is to give free medical treatment to the poor. That is pure charity, and coerced charity is less virtuous than meeting obligations as a debtor.

Obviously the libs see it backwards. The poor are the highest moral priority for them, and if the middle class is screwed to deliver it, so be it. If the middle class is made poor, well they too can use the socail safety net.

Medicaid, Section 8, AFDC, WICC, SCRIP, all the first things that must go. Until I see them getting cut we're not getting serious. Even your seemingly bold suggestion of ending a few departments is far, far less than needed to close the gap.

17 posted on 01/26/2011 1:24:40 PM PST by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
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To: Jack Black

The votes are with the poor....that is what the Democrats see.


18 posted on 01/26/2011 1:29:21 PM PST by Ernest_at_the_Beach ( Support Geert Wilders)
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To: noiseman
"...when in reality we need to be eliminating entire departments (Education, Energy, and most if not all of the EPA for a start)."

But first, anti-family, feminist programs (HHS: Health and Human Services).




19 posted on 01/26/2011 11:32:19 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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To: Ernest_at_the_Beach

Good post! You also might want to see comment #19.

http://www.freerepublic.com/focus/chat/2663613/posts?page=19#19


20 posted on 01/26/2011 11:35:16 PM PST by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote.)
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