Roubini Warns of Global Recession RiskAug. 11, 2011

[Hawkowl]

Economist Nouriel Roubini says the risk of a global recession is greater than 50 percent, and the next two to three months will reveal the economy's direction. In an interview with WSJ's Simon Constable, Roubini also says he's putting his money in cash. "This is not the time to be in risky assets," he says.

http://www.marketwatch.com/video/asset/roubini-warns-of-global-recession-risk-2011-08-11/C036B113-6D5F-4524-A5AF-DF2F3E2F8735#!C036B113-6D5F-4524-A5AF-DF2F3E2F8735

This is a good video interview on the main problem with the US economy: lack of aggregate demand.

[golfguru]

1. Demand follows jobs....job growth is dismal at best

To expand jobs, businesses need to expand. Businesses have cash to expand but they are sending it abroad due to tax incentives and less regulations.

[femrap]

2. Roubini is one of the

few economists worth listening to....K and R.

I think people are only buying the basic necessities...and given that credit card debt was up 7% last month, I think they've had to get the credit card out to make ends meet.

[Taverner]

3. Then we must have more TAX CUTS FOR THE WEALTHY

That will get this economy back on track, by gum!

[golfguru]

4. Increase tax on wealthy individuals, eliminate corporate tax

Every penny of income derived from any corporation ends up in some individual's pocket. That includes CEO types, VP's, large stock holders, small stock holders, all employees. It is much better to tax individuals based on their income level. Taxing corporations penalizes the small fry employees and small stock holders equally with the big shots. Worse than that, it gives corporations incentive to move their business to lower tax countries.

[jwhitesj]

5. +1

[jakeXT]

6. He is probably hanging around too much with Larry Summers

From Nov 2009

Roubini Says Rogers’s $2,000 Gold ‘Utter Nonsense’ (Update1)

“Maybe it will reach $1,100 or so but $1,500 or $2,000 is nonsense,” Roubini said.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOfwpkHV2clM





Role models

He credits a number of economists for his understanding of economics. He said, "One person who has had a great impact on me intellectually was my adviser at Harvard, Jeffrey Sachs. For me he’s the model of a great intellectual. He is both a rigorous academic and very human, involved in big picture issues such as poverty, AIDS, and Africa. He’s someone with a great mind that is also very engaged with the world. Another intellectual hero is Larry Summers, the former President of Harvard, an amazing intellectual and academic, who is very deeply involved with the policy world. I worked for him for many years in the US Treasury during the Clinton Administration".<9>

http://en.wikipedia.org/wiki/Nouriel_Roubini

[edhopper]

7. Before discounting him on this

look at the time frame they were talking about.
This was in 2009 when Rogers said it would reach $2000.
It did not reach $1500 until this year.
You might want to read his more recent comments about gold.

[barb162]

8. His brilliance always amazes me. n/t