Friday, May 7, 2010

Roubini on The Dow Crash and Greece Crisis

Nouriel Roubini we are facing serious sovereign debt problem because we have socialized many of the private losses

May 06, 2010 — RGE Economist Nouriel Roubini aka Dr Doom believes Greece is the first symptom of a larger problem
Nouriel Roubini :"My interpretation is that we are at the next stage of this global financial crisis , the first stage was driven by aggressive borrowing and accumulation of debt in the private sector households and financial institutions and now we decided to socialize many of these private losses and there is a massive re-leveraging of the public sector with budget deficit of the order 10% of the GDP and doubling of public debt in most advanced economies "
Roubini"In my view Greece is insolvent their public debt is 120% of GDP their bufget deficit 13.6% of GDP , there is no country cando such a fiscal adjustment to reduce the debt to sustainable level , so I propose that Greece should be restructured there have been episodes of restructuring of public debt in a number of emerging market economies in the last decade , it can be done , instead of using official support to waste money to try to allow some people the exit it's better to restructure this debt it is better to restructure the debt..."

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Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.