Being interviewed by Television in Aix-en-Provence, France, the NYU professor and economist spoke candidly and openly about a wide range of topics, one of which might be the summary of the coming financial disaster in 2013. Included here are a couple of notable quotes from Roubini. How High Will Silver Go? Learn More >> http://www.silver-
“That's the fundamental problem: bankers are greedy and they've been greedy for the last many years. It's not a query if they're being more immoral these days than they had been thousands of years ago. You have to make sure you behave in methods in which you make certain you minimize those dangers. And one way of performing it's in the event you separate activities so you minimize the conflicts of interest otherwise these items are going to occur over and over again.”
“If some people end up in jail, maybe that will teach a lesson to somebody - or somebody will hang in the streets.” "Like 2008 you'll have an economic and financial crisis but unlike 2008, you're running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you can do fiscal stimulus; you can backstop and guarantee banks and everybody else. These days, more QEs are becoming less and less effective because the problems are of solvency not liquidity." Rare Coins, Silver Coins, Gold Coins >> http://www.silver-
In a television interview, economist Nouriel Roubini discussed the continuing strains of the eurozone crisis. His opinion on the matter is quite alarming to say the least. He placed a heavy emphasis on economic development, saying that austerity measures could really be detrimental. “We need growth in the eurozone. We cannot just talk about austerity because without growth, debt will probably be unsustainable. If GDP keeps on falling, and without financial growth, the socio-political backlash against austerity is going to be overwhelming.”
In order to succeed in those objectives, Roubini says the euro zone needs a "real depreciation in the periphery...external balance and competitiveness."
Austerity and monetary easing will only aid in digging Europe into a deeper hole. More importantly, he suggests that the world be more concerned with the pending consequences of an extreme oil price spike due to tension in the Middle East. In just a few months, we’ve seen the price of Brent crude rise from $90 to $120, and Roubini thinks this will continue. Prices are being buoyed up by a fear premium.
“We’re only $20 a barrel away from Brent being at a peak of what it was in 2008.” But it is not just sanctions on Iran that have forced the price up. Roubini names tensions in almost every nation across the region. “The entire Middle East is really a source of tension…for the international economic climate.” If the tension leads to a full-blown war, the entire globe would be under intense risk to get a renewed recession.
When asked about liquidity and monetary policy, he again emphasized financial development as the only stable solution. “Money can cope with the liquidity problem, like the banking system. It can't resolve the solvency issues. So the painful process of leveraging is going to continue.”
He indicated that monetary policy couldn't truly do much more to resolve problems. Rather, it's necessary to look at the real issues plaguing the economies. “Lack of development, leveraging heavy balance sheets, excessive debts are the problem.” “You cannot resolve debt issues only will liquidity. You are able to just kick the can down the road with liquidity, you cannot resolve those fundamental problems.” My suggestion is to buy gold and silver to prepare for the coming financial storms ahead. Better be safe, than sorry! How High Will Silver Go? Learn More >> http://silver-