Posted on 08/03/2008 11:44:55 PM PDT by TigerLikesRooster
Hundreds of banks will fail, Roubini tells Barron's
Sun Aug 3, 2008 3:52pm EDT
NEW YORK, Aug 3 (Reuters) - The United States is in the second inning of a recession that will last for at least 18 months and help kill off hundreds of banks, influential economist and New York University Professor Nouriel Roubini told Barron's in Sunday's edition.
Taxpayers will pay a big price for helping bail out the rest of the financial services industry as well, Roubini said -- at least $1 trillion and more likely $2 trillion.
The banks will become insolvent because of mounting losses as a result of the housing bust and because they have only written down their subprime loans so far, he said. Still in front of them are their consumer-credit losses, for which they lack the reserves, Barron's reported.
He also said there are hundreds of millions of dollars outstanding in home-equity loans that could be worth zero, too.
U.S. consumers, meanwhile, are "shopped out" and saving less, while the Federal Reserve's performance in handling the crisis has been poor, Roubini said, because it failed to see that the problem extended beyond
(Excerpt) Read more at reuters.com ...
18% at Jimmy’s best effort I believe??
That’s exactly what I was thinking. BTW, I departed Korea in 2005, and have been bouncing around various parts of the arab world for the past couple years, banking all the way.
I guess the time may be right to start looking around for some residential real estate back in the USA.
Regards,
TLR
“New York University Professor”
That’s all I need to read.
Either that or the tip off is "Nouriel Roubini".
What is is with these foreign nationals the press is so eager to pump for bad economic news --I mean, over on this other thread we got "Georgia State University forecaster Rajeev Dhawan" telling us that increasing American productivity is not helping us.
I'm not sure which is worse, the babbling "experts" or the goons that quote them.
While you're at it get the weather forecast for the next five years. I'm interested in commodities.
Did you withdraw your money before the bank was taken over by FDIC? That’s the part I don’t really understand. Next, what have you done with your money now?
I thought mortgage rates topped 21 per cent if only briefly.
That had to kill any bank holding 4 per cent 30 year mortgages. The whole point of banking is to “borrow at 4, lend at 6, on the course by 3” or something like that.
NO more calls, please.
We have a winner!
NO more calls, please.
We have a winner!
I would buy sub-prime crashed real estate in the USA now if your salary is on a strong, non-US dollar based foreign currency.
bttt
Chinese overlords worry me more. Chinese buying up the USA at bargain basements prices
Japanese are not so bad compared to the Chinese because China is out for world power. Japanese are in it just for money
The FDIC had taken it over 3 or 4 days beforehand. The crowds around the bank were huge and unruly. I went 3 or 4 days later to let the fuss die down.
I had to wait in line for about 1 hour. People were nice in line. The FDIC was there and they were answering our questions. They were only letting one person into the bank at a time.
When they let me in there was one teller. I got my money with interest so I walked out with over $100,000.
Now its parked waiting for me to get my account at Treasury Direct [treasurydirect.com] where I’m going to start laddering treasuries online. I opened up an online banking HSBC bank where the money will sweep between the treasury and my account separate from my regard banking accounts.
It was not fun but I got my money back. I’m just happy I didn’t put more in. The CD rates were very high so it was tampting. :)
Parked where?
Remember how Bill Clinton 'cured' homelessness?
The homeless crisis was on television every day during the Reagan and Bush I Presidencies. The very day Bill Clinton took office, you never saw another homeless story again.
One need only look at the disastrous Presidency of FDR - the architect of the severity of the Great Depression - and how he managed to win election after election until Hitler eventually cured the depression - of course, the left gives all the credit to FDR.
A short term financial instrument.
would that be the top of the second or the bottom of the second...
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