I Guess When “Doctor Doom” Says It’s Over, It’s Over . . . Opps, Wait a Minute!

Nouriel Roubini

Well, Nouriel Roubini, AKA “Doctor Doom,” one of the few economists to predict the financial crisis of 2007-09, really had folks on Wall Street going today when he seemed at last to be sounding a note of optimism. 

Earlier, CNBC reported Roubini had said we would begin to emerge from the recession by the end of this year and partly credited a late day stock market rally to his comments. 

But by the end of the day, CNBC was reporting Roubini had not really changed his forecast, and the latter issued the following statement:

It has been widely reported today that I have stated that the recession will be over ‘this year’ and that I have ‘improved’ my economic outlook.  Despite those reports . . . my views expressed today are no different than the views I have expressed previously.  If anything my views were taken out of context.    

Like many others, Roubini sees a very slow recovery and a continued drift upward in unemployment, as also does FED Chairman Ben Bernanke, who warned a few days ago of a “jobless recovery.”  And Roubini also thinks there remains a possibility of a double-dip recession.

Meanwhile, MSNBC’s John Schoen cautions that despite some impressive second quarter profits for Goldman Sachs, JP Morgan Chase, and others, the financial crisis is still far from over.  He quotes Stephen Roach, chairman at Morgan Stanley Asia, who thinks that “by the end of this crisis $4 trillion worth of bad assets will be written down.  Thus far financial institutions have written off, at most, half of that.  So there is plenty more to come.”     

If you’re still interested in the financial crisis and all its ramifications, Greensboro Public Library continues to pick up new titles.  A quick search of the catalog produced the following results, all published in 2009:  The Great Financial Crisis:  Causes and Consequences by John Bellamy Foster and Fred Magdoff; The Housing Boom and Bust by Thomas Sowell; Agenda for a New Economy:  From Phantom Wealth to Real Wealth by David C. Korten; A Failure of Capitalism:  The Crisis of ’08 and the Descent into Depression by Richard A. Posner; Dumb Money:  How Our Greatest Financial Minds Bankrupted the Nation by Daniel Gross; The Return of Depression Economics and the Crisis of 2008 by Paul Krugman; The Wall Street Journal Guide to the End of Wall Street as We Know It:  What You Need to Know About the Greatest Financial Crisis of Our Time — and How to Survive It by Dave Kansas; The Crash of 2008 and What It Means:  The New Paradigm for Financial Markets by George Soros; Financial Shock:  A 360° Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis by Mark Zandi; Panic:  The Story of Modern Financial Insanity, edited by Michael Lewis; And Then the Roof Caved In:  How Wall Street’s Greed and Stupidity Brought Capitalism to Its Knees by David Faber (on order); and The Gods That Failed:  How Blind Faith in Markets has Cost Us Our Future by Larry Elliott and Dan Atkinson.

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One Response

  1. […] more of Greensboro Public Library’s recent titles on the financial crisis, check out posts here, here and […]

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