Roubini: World financial crisis 'not over'

Amhran Nua

As reported by the beebs, Nourel tells us that the crisis isn't over by a long shot:

The US economist widely credited with having predicted the financial crisis has warned we are already "planting the seeds of the next crisis".

Nouriel Roubini told the BBC that he is concerned about the growing gap between the "bubbly and frothy" stock markets and the real economy.

Over the last six months, the Dow Jones Industrial Average has risen about 45%.

But Mr Roubini says he sees an economy where consumers are "shopped out" and "debt burdened".

'Crisis not over'

Based on the run up in share prices in recent months, investors appear to be betting that good times are around the corner. A view not shared by Mr Roubini.

"The crisis is not yet over," the New York University professor said.

"I see an economy where the consumers are shopped out, debt burdened, they have to cut back consumption and save more.

"The financial system is damaged... and for the corporate sector I don't see a lot of capital spending because there is a glut of capacity."

Mr Roubini believes US house prices have further to fall, straining America's fragile recovery.

So much for the green shoots.

Tipp Man

Amhran Nua wrote: »

As reported by the beebs, Nourel tells us that the crisis isn't over by a long shot:

So much for the green shoots.

The good old W recession, that could lead to really difficult times in Ireland although it might mean that the ECB does not increase interest rates for a bit longer, so maybe good news for homeowners (if they can keep their jobs)

SLUSK

We need to save money, not spend it on useless crap. ECB should raise its rate to 10-15% for good measure. The interests rates are way to low and it will create massive inflation.

Amhran Nua

SLUSK wrote: »

ECB should raise its rate to 10-15% for good measure.

That would wipe out the banks here completely (along with any money you might have in them) as mortgage impairments rose to record levels.

SLUSK

Amhran Nua wrote: »

That would wipe out the banks here completely (along with any money you might have in them) as mortgage impairments rose to record levels.

I have already left the country.

bauderline

SLUSK wrote: »

We need to save money, not spend it on useless crap. ECB should raise its rate to 10-15% for good measure. The interests rates are way to low and it will create massive inflation.

plonker.

forum rules aside that comment was warranted.

cyclopath2001

SLUSK wrote: »

We need to save money, not spend it on useless crap.

That's heresy in a consumer society. Some radicals have proposed taxing savings so as to force you to spend it on useless crap...

Don't know about you, but we're going 'Kris Kindle' this year, spending on presents is going to be slashed big time.

Dannyboy83

I don't think interest rates will ever reach 15% while we are in the emu with France/Germany anyway.

10% maybe.

SLUSK

cyclopath2001 wrote: »

That's heresy in a consumer society. Some radicals have proposed taxing savings so as to force you to spend it on useless crap...

Don't know about you, but we're going 'Kris Kindle' this year, spending on presents is going to be slashed big time.

I have rationalized away Christmas, it is only an excuse to buy useless crap. Who needs all these celebrations?

Amhran Nua

And more from the BBC:

Germany's trade surplus falls 43%

Germany's trade surplus fell 43% in August after a drop in exports from Europe's biggest economy, according to the national statistics office.

Germany exported 8.1bn euros (£7.45bn;$11.95bn) more goods than it imported in August, down from 14.1bn euros in July.

The fall in exports was the first for four months and had not been expected.

Exports were down 20% compared with the same month of 2008 while imports were 19.3% lower.

Apparently a jobless recovery isn't possible after all...

dragonsgates

The total value of all securities now is over 7 times the value of the planets GDP.

Global warming and the next oil enrgy crisis is just around the corner.

Our style of existense is almost over.

AlekSmart

I have rationalized away Christmas, it is only an excuse to buy useless crap. Who needs all these celebrations?

Here here Slusk.....I have for many many years mounted a lonely campaign against all this oul ****e.

For example I worked Christmas Day whenever possible even swapping onto it by times.

Following the somewhat accidental manner in which Dublins City Bus service was removed on Christmas Day (In somewhat clear and direct contravention of the "Serving All of the Community" PR puff) I consistently lobbied for the reinstatement of such Public Service.

I still believe that the absence of ANY such Public Service on Christmas Day directly abandons those who MOST need it,ie: Those without access to a CAR.

It also abandons those of non-christian belief,a grouping which has expanded rapidly in the past two decades,but I suppose since most are foreigners they will have gone "Home" for Christmas.....the list goes on !

God (!!) forbid we should embrace the American methodology of a single day off and back to work on the 26th......Ha !! I`ll bet that will get the hackles up !!!!!! :P