Roubini sees U. S. playing greater role in banking

[leftchick]

http://www2.canada.com/calgaryherald/news/calgarybusiness/story.html?id=987b2801-4e30-4ada-b909-94ac62822b51

Herald News Services

Tuesday, February 10, 2009

Nouriel roubini, the new york university professor who predicted the global financial crisis, said the u. s. will need to pump more money into its banking system and become more involved with banking operations.

"The government will take over a big chunk of the banking system," roubini said, adding that, eventually, banks are going to need another capital injection. "just to bring it back to where it was before, you're going to need a trillion-and-a-half" dollars.

Aides to Treasury secretary Timothy geithner worked through the weekend to complete a bank rescue package that was announced monday in washington.

Aspects of the plan that have been settled include a new round of injections of taxpayer funds into banks, targeted at those identified by regulators as most in need of new capital, sources said.

Roubini also predicted the economy won't see any "positive growth" until at least the end of this year. in 2010 the economy will likely expand less than three per cent so it's going to "feel like a recession even if technically we're out of a recession," he said.

[ConcernedCanuk]

1. Oh goodie - they've done such a tremendous job so far - why not??

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.

Think I'll keep cash, and stay away from credit cards/companies

I'm poor

But I own what I got

I've been amazed at watching friends get new jobs, big mortgages, new vehicles on payments -

Job disappears

so does the house and vehicle and they STILL owe a ton of money

Credit free since 1980

Stayin' this way