Posted on 08/19/2008 12:33:51 AM PDT by TigerLikesRooster
An economic Cassandra whose predictions are coming true
By Stephen Mihm
Saturday, August 16, 2008
NEW YORK: On Sept. 7, 2006, Nouriel Roubini, an economics professor at New York University, stood before an audience of economists at the International Monetary Fund and announced that a crisis was brewing. In the coming months and years, he warned, the United States was likely to face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence and, ultimately, a deep recession.
He laid out a bleak sequence of events: homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt. These developments, he said, could cripple or destroy hedge funds, investment banks and other major financial institutions like Fannie Mae and Freddie Mac.
As Roubini stepped down from the lectern after his talk, the moderator of the event said, "I think perhaps we will need a stiff drink after that." People laughed - and not without reason. At the time, unemployment and inflation remained low, and the economy, while weak, was still growing, despite rising oil prices and a softening housing market.
(Excerpt) Read more at iht.com ...
Ping!
and...
What you are saying makes no sense. None.
On the one hand you’re saying that prices are collapsing. On the other you’re saying this is good because prices are cheap.
I'm afraid Roubini's right.
What’s that expression?
Something about how Democrats have successfully predicted 10 of the last 3 recessions?
You need to work on that line of reasoning Candor.
Participants out of necessity in the market are not to blame for the ill chosen decisions of market makers. Increasing misery indexes are a bellwether of increased populist and socialist social and political movements. People start making rationalisations that bring them to the audacity of hope, hope that during the next bubble they aren’t the one’s left holding the bag.
well put...
What you are saying makes no sense.
.Disagree
Buy low, sell high, made sense.
What I meant by that was that he equated the situation with a sunny conservative economic environment. What he described was The Great Depression.
Uh huh.
Brings to mind what those same people were saying back in 1973. The Japanese were going to rule the world. We were all screwed.
Funny how things turned out.
That would have been in 1983.
And the Japanese may not rule the world, but they sure did make a dent in the auto, electronic, computer industries.
Not, mind you that the d^^k heads in Washington have the integrity to do it.
Too late now. With the economy gone sour you’ll have every elected official in the nation screaming for public works, defense and education money from Washington.
The lesson the last 7 years have taught me is that "Tax and spend democrats" are preferable by just about every measure to "Spend but don't tax Republicans".
“Increasing misery indexes are a bellwether of increased populist and socialist social and political movements.”
Misery indexes are more pap spewed out by the leftist press, whose agenda is to destroy the free market and give us collectivism. Just because a liberal engineers a a piece of propaganda and dresses it in the cloak of “business” is no reason for us to believe it.
The misery is located in the hellholes run by liberals and their policies of crushing fascist bureaucracy, the massive theft of money from productive areas and its redistribution to leftist welfare cities and the hostile attitude toward business.
Michigan is a good example. Everything here is dead or dying. The biggest export in this socialist/welfare state is productive citizens by the hundreds of thousands and young people (the future).
Last week a Michigan citizen was selling nine homes in Saginaw for an opening bid of $1,000 on ebay. You could become an instant slum landlord and pile in Section 8 renters and illegals.
The people suffering misery are those trying to make a living in liberal hellholes.
If nobama is elected we will all be living in Michigan.
The Misery Index of the Carter years was promoted by the GOP.
But I agree that the media simply use them to achieve their agenda.
Too damned true!
Gasp!
Now that's a prediction that would make any sane person vote for McCain!
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