Roubini and Bremmer: What’s Behind Wall Street’s Turmoil
With the Dow below 10,000, leading economists Nouriel Roubini and Ian Bremmer continue their conversation about how America can recover, China’s growing strength, and just how bad Europe really is.
What follows is a continuation of a conversation that Ian Bremmer and Nouriel Roubini began this week about the world economy, the future of free markets, and more. You can read the first installment here.
Bremmer: No question. In fact, many Americans are behaving as if the crisis is past and that we can now afford to move on to the blame game. The Big Short and 13 Bankers are flying off the shelves, Goldman Sachs chief Lloyd Blankfein has faced the ire of an embattled Congress, and endangered incumbents are talking tough…
Nouriel Roubini: One of the things that will become clearer, is that the “recovery” everyone wanted to start trumpeting a few months ago is going to be anemic. It was always going to be so since this is not only a Great Recession, but a Great Recession happening at a time when global geostrategic dynamics are shifting…
Read the full piece HERE
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3 Responses to “Roubini and Bremmer: What’s Behind Wall Street’s Turmoil”
“power inevitably will redistribute itself, and we will see more meetings like the U.S.-China Strategic and Economic Dialogue just concluded—where China knew it had really nothing it needed to “win” from the U.S. except a continuation of the status quo. Whatever one thinks about the ethics of Chinese investments in places like Sudan and Myanmar and North Korea, China’s posture at the annual U.S.-China summit makes it clear that, in China’s eyes at least, they see time as being firmly on their side.”Should the “continuation status quo” involve debt forgiveness (or the threat of default if they are unwilling) from China? After all, if they are not ready to consume and return the favor of stimulating American growth by employing American exporters, perhaps they will find it beneficial to forgive much of our debt, and let the status quo continue again. After all, they are concerned about political consequences from within if they can’t continue to bring employment to their masses. Or does America eventually just pay them back in freshly printed dollars?“RGE’s Outlook for global growth was predictably branded as “too bearish” by many. Yet now consensus is rapidly converging on our position. The EU, and particularly the eurozone members of the EU, is at risk of a double-dip recession. As that unfolds, it could turn out, ironically, that my economists and I were actually too optimistic. EZ (eurozone) woes are fueling risk aversion as investors fear that a liquidity squeeze and possibly a crunch could be around the corner. This would not just affect growth in the EZ but would likely result in a global slowdown consistent with our theme of a year of two halves.”Brings to mind this article:http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.htmlHere’s some history for us.Niall Ferguson: Fiscal Crises and Imperial Collapses – Peterson Institute
Whoops!Mr. Ferguson is here.Listen to the question and answer segment also.http://www.piie.com/events/event_detail.cfm?EventID=152&Media
Significant idea. Would die to learn more about that.