Ultime da Roudini

On Nouriel Roubini's Global EconoMonitor, Nouriel explains why the U.S. economic and financial crises reinforce each other and have yet to bottom. He illustrates several persistent and structural risks for U.S. consumer spending in “20 Reasons Why the U.S. Consumer is Capitulating, thus Triggering the Worst U.S. Recession in Decades“. As consumption provides 71% of U.S. GDP, a consumer recession could result in the worst recession since World War II, starting with a minimum 5% GDP contraction in Q4 2008 and ending at least 3 times as long and deep as the previous two recessions. To make matters worse, the market’s loss of confidence in policymakers despite aggressive policy actions will keep financial losses mounting. To pull out of this mess, Nouriel calls for committing the entirety of TARP to recapitalizing financial firms in “Transcript of Talk at AEI seminar on the "The Deflating Mortgage and Housing Bubble, Part IV: Where Is the Bottom?”

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