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Bailout: No cure for recession

Discussion in 'Political Discussion' started by PatriotsReign, Sep 24, 2008.

  1. PatriotsReign

    PatriotsReign On the Roster

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    Nouriel Roubini is the MAN right now on the world economic stage. He has accurately forecasted almost every step of our decline as far back as 5 years ago. He was shunned for much of that time as doomsdayer. Now companies from all over the world are flocking to him for his advice.

    here's what he has to say about the pending bailout;

    "NEW YORK (CNNMoney.com) -- Even if the Bush administration's $700 billion bailout works, the United States still faces the longest and most severe economic stretch since the Great Depression, according to one economist.

    "The recession train has already left the station," said Nouriel Roubini, professor of economics at NYU's Stern School of Business during a conference call Wednesday. "What this plan can avoid is a Japan-like, L-shaped recession," where the economy sinks and stays sunk, "that could last a decade or more."

    He said a well-implemented plan could limit the heavy bleeding to 18-months.

    Job losses have increased and the unemployment rate hit 6.1% in August, up from 5.7% in July, the highest in five years. Roubini is forecasting it to top out at over 8%, at least.

    Roubini predicted that practically all lending will see increased rates of defaults in the coming months from auto loans to credit cards to commercial real estate loans to municipal bonds.

    "We don't just have a subprime mortgage lending system," Roubini said, "we have a subprime financial system"


    Expert: Bailout no cure for recession - Sep. 24, 2008
    Last edited: Sep 24, 2008
  2. weswelker#83

    weswelker#83 Rookie

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    No worries. We're not even in a recession. :mad:







    /“The price of greatness is responsibility.”
  3. ljuneau

    ljuneau Rookie

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    I'd also like to recognize Peter Schiff. Likewise he recognized the economic problems several years ago. When he appeared on the Saturday morning Fox business shows, he was laughed at, scoffed and called a doomsayer.

    Here is more of his latest article...
    Last edited: Sep 24, 2008
  4. PatriotsReign

    PatriotsReign On the Roster

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    I've seen him on CNN...he is good. Isn't he the guy who was economic advisor to Ron Paul? One thing he said which I don't agree with is the home prices will be kept artificially high;

    "He also claims that the plan will safeguard home equity by keeping real estate prices high. Since when did high home prices become a strategic national priority? If the plan succeeds, the gains for home sellers will simply be matched by losses for homebuyers, who end up paying inflated prices, and taxpayers, who get stuck with the losses when those buyers default."

    I think home prices will still come down as lending standards become tougher, there will be fewer available buyers in the market. The bottom line is that home prices will continue to decline until demand meets supply and that will only happen when homes are affordable enough for the population in a given area. This rule applies to all regions of the country.
  5. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    What we've both been speculating for a while(years) might just happen. Not good news,not good news at all. :(

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