Posted on 03/09/2009 4:07:48 PM PDT by quesney
The man who predicted the current financial crisis said the US recession could drag on for years without drastic action.
Among his solutions: fix the housing market by breaking "every mortgage contract."
"We are in the 15th month of a recession," said Nouriel Roubini, a professor at New York University's Stern School of Business, told CNBC in a live interview. "Growth is going to be close to zero and unemployment rate well above 10 percent into next year."
Echoing a speech he made earlier in the day, Roubini said he sees "no hope for the recession ending in 2009 and will more than likely last into 2010."
Roubini, who is also known as "Dr. Doom," told CNBC that the risk of a total meltdown has been reversed for now but that the economy is going through "a death by a thousand cuts." He also said that "most of the U.S. financial institutions are entirely insolvent."
"The market friendly view for the banks is nationalization," said Roubini. "Temporarily take over the banks, clean them up and get them working again."
Earlier in the day, Roubini spoke to the CBOE Risk Management Conference and said he believes total losses could peak at $3.6 trillion in the financial system, with half of that being borne by banks and bank dealers and the other half borne by hedge funds and pension funds, among others.
He said that while U.S. GDP next year could be zero, global GDP could dip into negative territory.
"We could end up ... with a 36-month recession, that could be "L-shaped stagnation, or near depression," Roubini said. He puts the chance of a severe U-shaped recession at 66.7 percent, and a more severe L-shaped recession at 33.3 percent.
(Excerpt) Read more at cnbc.com ...
I suppose he can always hang out and do a little crack with them.
Obama's "base" is rapidly vanishing among all but the most vilely stupid voters, their wallets are now so impacted that they keep checking their rectums to see where the cash went, and wondering whether they will have a job next week.
It really stinks bad in Liberal Socialistville these days.
They need to wash their hands.
There will always be some money to give them. They’ll get the majority of whatever we remaining workers are forced to kick in to the federal exchequer.
We have a tendency to exaggerate the speed with which Obama is losing support, largely because we read and listen. We are in tune with what the Wall Street Journal and Business Week are saying; we exchange anecdotes about some momentary, aberrant doubt Chrissie Matthews displays. But we on FR are anomalous. The fact is that the majority of Obama voters are unread, unthoughtful people or they would not have voted for him in the first place. They care not what disenchantment Wall Street is now feeling. All they care about is that his skin is a slightly darker shade than that of previous presidents.
we have tools for breaking mortgages. they’re called foreclosure and bankruptcy.
No, I don't think so. In the interview, he says we are 15 months into the recession and it could last until 2010, adding parenthetically that it could run 36 mos rather than 24.
Thus, I think he means 21 more months (until near the end of 2010) added on to the 15 we've seen.
But Obama is TOAST.
Regardless of how much loved he is by the unwshed "poh" of the cities. They are as flighty as a fart on a brisk wind. They have the loyalty of a civet cat in heat pursued by 40 Toms.
Easy come easy go.
No one gets a second term who does what has been just done to the wallets of America.
He said “...next year growth is gonna be close to zero...”
The two are not mutually exclusive!
No the phone tax did to fund the Spanish-American war of 1898.
Federal Income tax was never temporary as far as I remember. It was pushed that it would only be paid by the very uppermost rich, and even then the rates would be pretty low (7% or so, I am recalling).
Until they get their 401(k) quarterly statements the first week in April. Then look out!
I was referring to people who don’t have, who don’t dream of having, a 401K.
Ping for later
Destroying the investor class is not hope and change. Soup lines are not what the "poh" want. They want free health care, free housing, and a free fling with the local squeeze without supportuing her children.
No poor wee Bambi may not know it but the crock of money generated by a free economy just ran dry. Cha-ching!
The only way Obamabi will have the money past his first year of Pork Barrel Acorn like spending will be to re-invigorate the investor class, which he will not do at all costs, they tend to vote Republican, they vote their wallets.
So what does that leave...further nationalization of the economy and totalitarian social control just so we can take "de shawt cut to de promise lan'" Glory effin hallalujah, de jubalee done come.
My bet is that America will never tolerate such a "short cut" which is in essence the Obambi Plan
Toast. I smell it. Its dry, take some Obabutter on it, and then watch America spit it out like poison.
Without the MSM help Obamafuscation has, his ratings would be less than 30%.
Notice how the progues at the White House have all lost there smiles . Sweet. I love it when Rush is right.
We need the right nominee, and we are going to roll up these idjits like a dirty carpet ready for the bonfire!
LOL, if GDP were zero, I think somebody would grow some food or something, and then it would be nonzero again. :D
Unless its a nationalized bank that doesn't care! That won't help the pace of recovery, either.
Withholding was supposed to be temporary not income taxes.
“If these guys succeed in using the state to interfere with private contract (violating the US Constitution that nobody bothers to read anymore) only the best credit risk will get loans and the housing market will be flat for decades.”
To what part of the Constitution are you referring?
Article 1, Sect 10 which covers contracts specifies States, not the Feds. That is why all bankruptcy courts are Federal and so the Federal bankruptcy courts, the Treasury or anything else that is not a state institution is not bound by Article 1, Sect 10 of the Constitution.
Further, the Supreme court ruled in 1934 that the federal bankruptcy courts could get involved in mortgage contracts in Home Building & Loan Association v. Blaisdell 290 U.S. 398 (1934). The courts went further in 1983 and said during an economic crisis, the bankruptcy courts can do basically whatever the hell they want in Energy Reserves Group v. Kansas Power & Light 459 U.S. 400 (1983).
Though I agree that this would fry the housing market and trying to purchase a home would have draconian requirements, intereference with contracts by anything Federal would not be unconstitutional.
Pretty sure we’ll blow right past 5000 on the way to 3500. Would have thought this silly a year ago but there we are.
You’re right, of course. Love how they try to slip in these zingers to cover Zero!
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