The Full Nouriel Roubini Horror Speech

From ClusterStock: The Compleat Nouriel Roubini, October 14, 2008 10:02 am

Never heard the full Nouriel Roubini horror speech? Well, now's a good a time as any. Some highlights from Nouriel's excellent opus on Bloomberg TV today (click for video):

• The $250 billion bank recapitalization is only the beginning. The government will soon have to re-up (because it hasn't dealt with the huge writedown problem), and it will eventually have to take a much more active role in bank management. Otherwise, we'll just have a plague of zombie banks, like Japan.
  
  
• House prices will fall 40%, worse than the Great Depression. (Sounds horrifying, but we're more than halfway there).
  
  
• Worst recession in 40 years, now projected to last 18-24 months.
  
  
• Stock market rally will sputter
  
  
• Economy is "really tanking"
  
  
• Total bank losses from crap debt will be "closer to $3 trillion" (up from previous estimate of $1-$2 trillion). This compares to about $650 billion of writeoffs so far.
  
  
• Our new $1 trillion annual deficits will likely cause Russia, China, and the other countries who are funding our spending spree to say, hey, wait a minute, why are we funding this banana republic. Raise our interest rate or we're history.

If you've never seen the Nouriel show, definitely watch the video (15 minutes).

Related Posts :

1. But What About The Next $750 Billion Of Writedowns?
2. The Global Money Printing Probably Would Succeed Averting A "Mynsky Meltdown"

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