Renowned Dr. Doom: Nouriel Roubini: I fear the worst is yet to come

When this man predicted a global financial crisis more than a year ago, people laughed. Not any more...

Dubbed Dr Doom for his gloomy views, this lugubrious disciple of the “dismal science” is now the world’s most in-demand economist. He reckons he is getting about four hours’ sleep a night. Last week he was in Budapest, London, Madrid and New York. Next week he will address Congress in Washington. Do not expect any good news.

Contacted in Madrid on Friday, Roubini said the world economy was “at a breaking point”. He believes the stock markets are now “essentially in free fall” and “we are reaching the point of sheer panic”.

For all his recent predictive success, his critics still urge calm. They charge he is a professional doom-monger who was banging on about recession for years as the economy boomed. Roubini is stung by such charges, dismissing them as “pathetic”.

He takes no pleasure in bad news, he says, but he makes his standpoint clear: “Frankly I was right.” A combative, complex man, he is fond of the word “frankly”, which may be appropriate for someone so used to delivering bad news.

business.timesonline.co.uk...

Many laughed at him...like they do us (i.e. conspiracies, etc)...but he turned out to be right in the end...

Although many still try to discredit him...

the reason he has critics when he has been predicting things very accurately (as accurate as any main-stream economist) is that BANKING and FINANCE is a CONFIDENCE GAME!

if every economist let on four months ago that the market was as bad roubini claimed the market would have had a higher chance of a disorderly collapse, telling lies to instill confidence in some investors is something as old as ........(insert something that has been around a long time) because it causes the market to be a bit better a bit longer and allows the smart money to find a buyer at higher prices from the "dumb money".

they manage the "dumb money's" perspectives so they see the initial drop from 14,000 to 13,000 on the dow as a buying opportunity or a "correction". and there are so many that have naive trust or lack of deep knowledge that it works, that's another reason financial cheerleaders lie.

But it's a confidence game and things like "the economy is sound" or whatever will be parroted because when enough people still believe this it actually helps the economy from tanking (now the big line that people like to tell themselves is that this is just part of a cycle.........i'm afraid this is the best possible scenario people can hope for given how the economy is turning downward so fast. ........... ( a "correction" doesn't seem to fit anymore) unfortunately this is a "wheel breaker" and a new wheel will be created that is global in nature and after that is established, then we can go back to having cycles again. how much pain americans feel depends on

1. wether they keep there job

2. wether the U.S.A keeps the world reserve currency i.e petro dollar

Lol. I love the guy.

I dont blame him for being a bit cranky about how people have derided him. I would be too. It isnt easy to be right, have the whole world laugh at you, and then when you are proven beyond a shadow of a doubt to have been right, to have some morons say "well he said it too early."

What a load of rubbish.

I also liked how he says;

business.timesonline.co.uk...

Others who claimed the economy would escape a recession had been swept up in “a critical euphoria and mania, an irrational exuberance”, he said.

I agree. In another post, I argued that our world leaders, "The Illuminati" are not evil geniuses but rather are insane.

I think his phrasing is more elegant. "An irrational exuberance." "A critical euphoria and mania." Lol. I absolutely love it.

Great find OP.

Thank you illusionsaregrander!

Although our current economic crisis sucks, isn't it a bittersweet experience for Mr. Roubini?

Roubini told an audience of fellow economists that a generational crisis was coming. A once-in-a-lifetime housing bust would lay waste to the US economy as oil prices soared, consumers stopped shopping and the country went into a deep recession.

The collapse of the mortgage market would trigger a global meltdown, as trillions of dollars of mortgage-backed securities unravelled. The shockwaves would destroy banks and other big financial institutions such as Fannie Mae and Freddie Mac, America’s largest home loan lenders.

“I think perhaps we will need a stiff drink after that,” the moderator said. Members of the audience laughed.

Once again, the one who predicts a gloom future is ridiculed...

I am curious to see if his future predictions come to pass...

plucky is scared. I don't even have a 401K. there are musing in the blogosphere concerning the economy, and they themselves use economy of business writing to explain--in explicit detail--the failings of the church. There is no seasoning of a burnt steak, but we can try and still gross ourselves out and gag and start over again with microchips for the masses and other chain-building exercises that "society" impresses upon us--spoon-fed willingly. plucky is mad!



[edit on 26-10-2008 by pluckynoonez]

I'm with Plucky..............

Originally posted by rikk7111
I'm with Plucky..............

Ummm...I have no reasonable comment...