He’s perfectly right to claim that the tightening in regulations is purely cosmetic. Juts observing Geithner and Osborne bleating on behalf of hedge funds as ECOFIN plans to introduce real regulation for the first time tells you everything you need to know.
He actually has a few good things to say about ireland
June 10 (Bloomberg)
The European Central Bank should reduce its benchmark interest rate to zero and expand government bond purchases to offset the recessionary effects of euro-area austerity measures, New York University economist Nouriel Roubini said.
“That has to be the policy mix: tight fiscal, but much more easy money, looser monetary policy, more quantitative easing and also a weakening of the euro,” said Roubini, who predicted the financial crisis, in an interview in Rome today.
Greece’s near default has prompted governments from Berlin to Madrid to implement budget cuts to convince investors they can tame deficits, threatening to crimp the region’s fragile economic recovery. The ECB has supported European Union efforts to boost confidence in the euro and the region’s debt by buying government bonds and making unlimited short-term funds available to banks.
ECB President Jean-Claude Trichet said today that the ECB’s benchmark rate of 1 percent, which is four times the comparable Federal Reserve rate, remains appropriate.
“Going to zero alone is not going to be enough, it’s 100 basis points,” Roubini said. “They need to go to zero, they need to do more quantitative easing, they need to support dysfunctional markets, they need to signal that they are actually not uncomfortable with a weaker euro as long as that is a gradual and orderly process.”
The euro has lost 16 percent against the dollar this year and slipped to a four-year low this week on investor concern that the sovereign debt crisis may force some countries to abandon the single currency. The euro traded at $1.2095 at 2:30 p.m. in London, up from $1.1979 yesterday. Roubini said he could see the euro falling to parity against the dollar.
Germany, Europe’s largest economy, on June 7 announced a four-year, 80 billion-euro package of tax increases and spending cuts. Italy, Spain, Portugal have also adopted austerity moves in recent weeks in a bid to prevent a Europe-wide debt shock.
let’s punish savers so and purchase worthless toxic assets. Great idea.
Avoiding a second crisis by Nouriel Roubini
Overspending countries are now retrenching, owing to the need to reduce their private and public spending, to import less, and to reduce their external deficits and deleverage. But if the deficit countries spend less while the surplus countries don’t compensate by savings less and spending more - especially on private and public consumption - then excess productive capacity will meet a lack of aggregate demand, leading to another slump in global economic growth. So, what should policymakers do?
His says policymakers should:
KEEP RATES NEAR ZERO
LET THE EURO WEAKEN
EXTEND STIMULUS, IF NEEDED
PHASE REFORM IN SLOWLY
IMF, EU TO LEND A HAND
full article here
Double dip, The doom monger is at it again.
looks like the good doctor is feeling a little more positive…
Economic Doomsayer Nouriel Roubini Buys $5M Party Penthouse
He must have forgotten the pills today!!
Hard to disagree that there is risk, these guys seem to hedge more and more each day. My bet is still on major reset in 2012.
bloomberg.com/news/2011-06-1 … -says.html
A “perfect storm” of fiscal woe in the U.S., a slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy, New York University professor Nouriel Roubini said.
There’s a one-in-three chance the factors will combine to stunt growth from 2013, Roubini said in a June 11 interview in Singapore. Other possible outcomes are “anemic but OK” global growth or an “optimistic” scenario in which the expansion improves.
“There are already elements of fragility,” he said. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest.”