Dr. Doom, Nouriel Roubini says the worst is not over: A real financial panic is coming, and governments will be forced to shut down the financial markets for a week or more as the economic crisis deepens.
“We’ve reached a situation of sheer panic … There will be massive dumping of assets … hundreds of hedge funds are going to go bust … Systemic risk has become bigger and bigger … don’t be surprised if policy makers need to close down markets for a week or two in coming days.”
Uh-oh. He’s been a lot more right than wrong.
October 27th, 2008 at 10:32 pm
Normally I would dismiss this kind of pessimism as a standard-issue doomsday-isming soliloquy. But given what we’ve seen over the last two months, who knows.
October 28th, 2008 at 9:01 am
If you examine Roubini’s website, http://www.rgemonitor.com/,you can find that he has been sounding the alarm pretty convincingly since mid-2006. Certainly, the guy may be wrong with some things, but on this, he has been consistent. I am reminded of the myth of Icarus, who flew too near the sun: We, as a species, fail to recognize that there are limits. We can push the envelope, but if we “break” it, there may be very dire consequences.