Nouriel Roubini sounds the alarm

[marmar]

(Bloomberg) Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC, said the current slowdown in the world economy has brought forward the timing of a new financial crisis.

“I thought a few months ago that the perfect storm would be 2013,” Roubini said in an interview in London today. “But now, the economic weakness in the U.S., euro zone and the U.K. is front loaded. So we’re going to double dip earlier. The climax of it could be 2013, or it could be already earlier. It depends on what policy tools are available.”

Three years after the collapse of Lehman Brothers Holdings Inc., financial shares in Europe are under assault and the cost of insuring bank debt is at records as the global recovery falters and the euro-region crisis weighs on the economy. There’s a 60 percent probability that most advanced economies will fall into a recession, while authorities are running out of options to provide emergency support, said Roubini, also a professor at New York University’s Stern School of Business.

“You need to restore economic growth, not five years from now, you need to restore it today,” Roubini said. “In the short term, we need to do massive stimulus, otherwise there’s going to be another Great Depression. Things are getting worse and the big difference between now and a few years ago is that this time around we’re running out of policy bullets.” ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-06/roubini-says-global-economic-slowdown-accelerating-next-financial-crisis.html

[fascisthunter]

1. A Great Depression occurred before, and look at who was responsible

this wasn't something nobody could foresee... this was deliberate.

[HughBeaumont]

18. It's more WHAT was responsible . . .

. . . Republican-centered solutions to try and cure a Republican-created problem.

Different century, but still Republican-centered solutions to cure a Republican-created problem.

Tick-tock, tick-tock, tick-tock, tick-tock . . .

[ixion]

2. more tax cuts and free trade all around!

sarcasm aside, Mr. Roubini is spot on, as he was BEFORE the last meltdown.

[femrap]

27. He is one of the few

economists who actually understands economics.

The sh*t is heading for an industrialized-sized fan....The Audacity of Austerity.

[The2ndWheel]

3. And economic growth increases our environmental issues

Can't stop, can't continue.

[girl gone mad]

8. It doesn't have to be that way.

Japan has a higher GDP per capita than the US and they use about half the energy we do per capita.

[WCGreen]

11. Just to point out one thing...

The Japanese are not scattered across the a continent and have adopted energy efficient transportation.

Until we forget the suburban model of living, we ain't gonna ever solve our energy problems.

[pepito]

14. i am a GREEN TOO

however ...it is the US military that uses most of the petrol

Military Oil Usage Statistics
The United States Military is the the world’s largest fuel-burning entity. More than half of the defense department’s fuel budget is spent on fueling the U.S. Air Force. The Navy consumes about one third of defense oil resources and the Army uses around 12%. 25% of military energy is used to power and heat buildings and facilities - the remaining 75% is consumed for mobility purposes. This article gives a detailed breakdown of how much oil the military machine consumes.

» Source: Whiskey and Gunpowder

[The2ndWheel]

31. Every situation is going to be different in some ways

Japan also imports a lot of the resources needed to sustain about 45 million more people than Germany(and double the Japanese population, and it still doesn't match the US), on a land mass not too much bigger than Germany.

[xchrom]

4. Neo-liberals - merkel, sarkozy, Obama - have no

Faith in the wisdom of some one like roubini.

Doesn't matter what he says.

It has to fall apart at this point.

[marmar]

6. "It has to fall apart at this point."

Tragically true.

[femrap]

28. And I don't know

if there will be a safe place to hide when it does.

[Hotler]

5. k&r n/t

[DJ13]

7. brought forward the timing of a new financial crisis

Its no coincidence the countries starting to impose austerity are the same countries leading the world back into another depression.

[StarsInHerHair]

9. it took FDR 6 YEARS of stimulus spending to get the U.S. out of the Depression

we need BOLD action, we need someone who will steamroll over the phony fearmongering from the Right

[roamer65]

16. Unemployment was stubbornly high even until 1940.

It took World War II to finally break the back of the GD.

[StarsInHerHair]

19. then why hasn't Iraq & Afghanistan done the same now? FAIL!!! must have read

school history books Texas-approved

[Warren Stupidity]

25. because we are fighting wars with a relatively small army

and we have not put our economy into a wartime production mode.

The male labor force ages 18-45 were essentially all drafted for WWII and the entire industrial capacity of the US was put to work in a command-economy system building mountains of planes, tanks, and ships. By 41 we were at full employment and our industrial capacity was being utililized at 100%.

The low intensity high tech wars in afghanistan iraq and libya are nothing at all like WWII.

[femrap]

29. I see the groundwork

being done now for WW3/Crusades 2.

With all of the revolutions in the Middle East and N. Africa, we might see the same result as we saw in Iran. The Brotherhood takes power (which I think the US/Wealthy Weapons Dealers/TPTB want to happen) and we have ourselves The Christians vs. The Muslims.

All the unemployed youth of both sides will have jobs fighting each other. What a waste. I hope I'm wrong.

[tex-wyo-dem]

23. The main reason unemployment was still high...

Was that republicans "concerned" about the mounting deficit convinced FDR in '37 or '38 to reduce many government programs specifically designed to put people back to work (sound familiar?). Unemployment up to that time was being reduced significantly due to these programs.

The ONLY reason WWII got us out of the Depression was because of MASSIVE government spending, only this time on military.

The point being is that massive government spending to put people back to work is likely the only thing that will get us out of the economic problems now.

To pay for this taxes have to be raised, but not on the working class that are suffering enough as it is. The wealthy are the ones who should be footing the bill.

[TheKentuckian]

10. Yup

[bluestate10]

12. Roubini has predicted the destruction of the world economy numerous times.

Each time he was partially right, but mostly WRONG. The nutcase minister that predicted the end of the world a couple months back can be said to have been partially right given the spate of natural disasters that followed his prediction. But not ONE DUER that is hailing Roubini's chasing of windmills would consider the nutcase minister a prophet.

[marmar]

13. Chasing windmills?

Sounds like somebody chased the dragon.

[bluestate10]

15. Chasing windmills. Yes. Exactly. nt

[girl gone mad]

22. Not true.

Roubini gets credit for calling the financial crisis because he laid out the events which would unfold in detail and his analysis was very accurate. Many people foresaw the collapse of the housing bubble, many predicted a crisis in banking. He put all of the pieces together and presented his report on the global stage in 2006/2007, and he took a fair amount of heat for it at the time.

Since then, he has predicted a weak recovery in the US, while noting that the crisis is still bubbling under the surface. In his words:

"We socialised part of the private losses by bailing out financial institutions and providing fiscal stimulus to avoid the great recession from turning into a depression. But rising public debt is never a free lunch, eventually you have to pay for it."

He's right about this, too.

[scheming daemons]

17. Roubini has been sounding an alarm every month for 10 years.... like a stopped clock, he is right

every once in a while.

[femrap]

30. So you think

our economy is going to be just peachy keen then? Are you kidding?

You must be employed and have a nice inheritance.

Wait until Austerity comes to your home!

[Dokkie]

20. 2 words

Buy GOLD

[unkachuck]

21. "...this time around we’re running out of policy bullets."

....capitalist bullets....there's always central planning, i.e., Communism/Socialism....people have to eat....

....this time we shouldn't save capitalism, we should drive a stake through its heart....the American people are great innovators and inventors; we have an opportunity to show the world how to do Socialism right!

[flamingdem]

24. I love how he covers his bets, uh if not 2013, then 2012, but maybe again it will be 2013.. nt

[Prometheus Bound]

26. “Maybe (GOLD) 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