Roubini Says U.S. Financial Industry Facing `Disaster'

baby_boomer

And I see a safety net for us all .

Which is not to say that this same safety net won't need trimming by the Conservatives and the LibDems after 2010.

It's bad but it won't be Armageddon.

In 1929 they didn't have economists. Or rather there was one but they ignored him.

clobber_2

I just had to look up Moral Hazard. Fascinating, and very very apt.

So, does the fact that the safety net exists cause people to behave in a more financially risky way?

Gorgeous_George

To put it in perspective, money is something created by humans for exchanging goods and services. Some people like to save it just so that they have a lot of money. Big numbers on a bank statement.

If money disappeared overnight, would it really matter?

I doubt it.

Root of all evil.



GG

amcluesent

>been warning of all this for about 5 years<

Err, well we can all say the market will turn one day, but he seems to have been calling the market wrong for four years out of five.

dopester

baby_boomer wrote: »

And I see a safety net for us all .

We can't afford it. Kiss goodbye to the Welfare State and the NHS as you've known it.

(I'm not wishing that on all of us - just a cold projection on the outcome)

baby_boomer

The point is that the Welfare State and the NHS are there NOW to cushion any financial blow.

Perhaps they will be reformed further down the line in 2010-15, but those pay cheques will continue to go out to prime the economic pump in a recession.

And Gordon ain't going to cut them before Christmas.

dad-of-4

Gorgeous_George wrote: »

To put it in perspective, money is something created by humans for exchanging goods and services. Some people like to save it just so that they have a lot of money. Big numbers on a bank statement.

If money disappeared overnight, would it really matter?

I doubt it.

Root of all evil.



GG

well said, the only thing any of us have of true "worth" is our ability to market our Skills and Labour. the banks with their credit & debt have done nothing but undermine the true worth & value of thoes skills & labours.

banks dont want you to save and have "worth" they want you to be "worthless" and in their debt.

they know better than anyone that money is just worthless paper, they print the damn stuff.:rotfl:

ManAtHome

mr.broderick wrote: »

what the bloody hell does a 5ft brazilian striker know about finances ?

You either know women who are very tall, or have very hairy backs - c'mon, fess up!

Walletwatch

Walletwatch wrote: »

His next predictions are Morgan Stanley, and... wait... Goldman Sachs !!!

http://finance.yahoo.com/tech-ticker/article/41330/'They're-All-Toast'-Roubini-Says-Brokers-Even-Goldman-Can't-Stay-Independent?tickers=GS,LEH,MS,MER,JPM,BAC,C

Well, looks like the man was right again... Goldman Sachs 25% down, Morgan Stanley 35% !!!

Rick62

baby_boomer wrote: »

The point is that the Welfare State and the NHS are there NOW to cushion any financial blow.

Perhaps they will be reformed further down the line in 2010-15, but those pay cheques will continue to go out to prime the economic pump in a recession.

And Gordon ain't going to cut them before Christmas.

So we'll be ok till Christmas :xmassign:

Then what? What are these cheques going to be written against? Brown was spending more than was being received from tax when things were good, with unemployment rising, company profits falling etc they will need a lot more money at a time when the source of tax revenue will be collapsing.