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 ...
At least they aren’t saying the Gross World Product will be zero.
I bought another 20 pounds of corn meal tonight, $2.12 for a five pound bag...they would call it mealie-meal in Zimbabwe.
Also, a 20 pound bag of rice a Wal-Mart was $14.72...that's $.74 a pound. Contrast that with a ten pound bag of chicken leg quarters at $6.58 a bag...that's $.66 a pound.
A pound of rice costs more than a pound of chicken?
Dr. Doom my butt! He only gives a 67% chance of depression. I call 100% chance and am already down to 56 in my depression countdown as far as timing... Dr. Sunshine is more like it...
Hey, anybody else remember whan Roubini was soundly lambasted for predicting that total losses from the financial crisis would be $1.6 Trillion? He was crucified by the financial press and media for that prediction. Who is laughing now. $3.6 Trillion in total financial writedowns. BRUTAL.
Read this guys predictions:
What's Dead (Short Answer: All Of It)
* "Civil unrest will break out before the end of the year. The Military and Guard will be called up to try to stop it. They won't be able to. Big cities are at risk of becoming a free-fire death zone. If you live in one, figure out how you can get out and live somewhere else if you detect signs that yours is starting to go "feral"; witness New Orleans after Katrina for how fast, and how bad, it can get."
"The bad news is that you won't have a job, pension, annuity, Social Security, Medicare, Medicaid and, quite possibly, your life.
Obama is over-reaching and it is going to bite him hard.
Thanks for the scare. You should have saved that for Halloween. Eek!
So drought and starvation results in rivers clogged with cattle and men? Did you write the end of your story before or after the beginning?
With grain that's the "dry weight". Chicken is sold at the "wet weight".
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.