Background Image

...

Edward Conard Provides A Provocative Interpretation Of The Causes Of The Global Financial Crisis And The Policies Needed To Return To Rapid Growth. Whether You Agree Or Not, This Analysis Is Well Worth Reading.

-Nouriel Roubini

...

Please Wait....
Translating....

Edward Conard Provides A

Nouriel Roubini

...

Edward Conard Provides A Provocative Interpretation Of The Causes Of The Global Financial Crisis And The Policies Needed To Return To Rapid Growth. Whether You Agree Or Not, This Analysis Is Well Worth Reading.

Views: 7

Topic

More From Nouriel Roubini

I Believe In Market Economics. But To Paraphrase Churchill - Who Said This About Democracy And Political Regimes - A Market Economy Might Be The Worst Economic Regime Available, Apart From The Alternatives. I Believe That People React To Incentives, That Incentives Matter, And That Prices Reflect The Way Things Should Be Allocated. But I Also Believe That Market Economies Sometimes Have Market Failures, And When These Occur, There's A Role For Prudential - Not Excessive - Regulation Of The Financial System.

All The Risky Things That Were Happening Back In ’06 And ‘07 Are Back Again To The Same Level, If Not More. So We Are In The Beginning Of A Credit Bubble, But Just The Beginning.

I'm A Rock Star Among Geeks, Wonks, And Nerds.

If We Didn't Have Greed, Market Economies Wouldn't Be As Innovative As They Are. But In My View, Greed Has To Be Contained By The Fear Of Losses, So There Has To Be A System Where, If You Take Too Much Risk, You Go Into Bankruptcy. You Don't Systematically Bail Out People Who Take Excessive Risks.

In An Extreme Credit Crunch, Leveraged Purchases Of Gold Cause Forced Sales, Because Any Price Correction Triggers Margin Calls. As A Result, Gold Can Be Very Volatile - Upward And Downward - At The Peak Of A Crisis.

I Am Quite International. My Background, Born In Turkey. My Family Is A Jewish Family From Iran, So I Went From Turkey To Iran To Israel, And Then Grew Up In Italy And Ended Up In U.s. For Graduate School. So I Tend To Look At Things From An International Perspective, And I Think That Gives You A Little Bit Of A Broader View Of What's Going On.

In The History Of Modern Capitalism, Crises Are The Norm, Not The Exception.

Technology Is Spurring Innovation, And The So-called "demographic Dividend" Has Brought Change.

The Global Financial Crisis - Missed By Most Analysts - Shows That Most Forecasters Are Poor At Pricing In Economic/financial Risks, Let Alone Geopolitical Ones.

I Think Investing In A Good Education Has Been Key For Me, Although The Investment Was More In Time Than Money.

I'm Not A Pessimist By Nature. I'm Not Someone Who Sees Things In A Bleak Way.

We're Essentially Continuing A System Where Profits Are Privatized And...losses Socialized.

I Am Not Going To Say I Told You So, But I Did.

I Think It's True That The 1 Percent Or The Elite Are Living In A World Of, Maybe, Excessive Privilege, And They Don't Fully Realize How Much Pain And Suffering, How Much Anxiety Exists Out There.

I Am Just A Normal Human Being - I Am Alive! Why Is Anyone Surprised That I Am Human? Like Many New Yorkers, I Have A Multifaceted Life.

The Gains From Technology Must Be Channeled To A Broader Base Of The Population Than Has Benefited So Far.

Having Spent 10 Years Studying Emerging Markets, I Know That You Have Patterns Repeated Over And Over Again. A Bubble Is Like A Fire Which Needs Oxygen To Continue... When You See There Is No Oxygen, Things Change.

A Currency Serves Three Functions: Providing A Means Of Payment, A Unit Of Account And A Store Of Value. Gold May Be A Store Of Value For Wealth, But It Is Not A Means Of Payment. You Cannot Pay For Your Groceries With It. Nor Is It A Unit Of Account. Prices Of Goods And Services, And Of Financial Assets, Are Not Denominated In Gold Terms.

But In The Financial Markets, Without Proper Institutional Rules, There's The Law Of The Jungle - Because There's Greed! There's Nothing Wrong With Greed, Per Se. It's Not That People Are More Greedy Now Than They Were 20 Years Ago. But Greed Has To Be Tempered, First, By Fear Of Losses. So If You Bail People Out, There's Less Fear. And Second, B Prudential Regulation And Supervision To Avoid Certain Excesses.

You Have To Eventually Nationalize Us Banks, You Have To Take The Problem By The Horns. In My View Actually Most Of The Us Banking System Is Insolvent.

I Think Globalization Actually Maintains And Fosters Various Elements Of National And Cultural Identities. I Don't Think Everything Is Being Homogenized. If Anything, Your Food, Your Culture, And Your Ethnicity Might Become Part Of The Globalized World, And Thus Absorbed By Other Countries.

What We Need To Understand Is, One, That There Are Market Failures; And Two, That There Are Things Like Asset Bubbles And Irrational Exuberance. There Are Periods Of Booms, Bubbles, And Manias. These Things, If Left To Themselves, Can Lead To Crashes, To Busts, To Panics.

The Treasury Plan Is A Disgrace: A Bailout Of Reckless Bankers, Lenders And Investors That Provides Little Direct Debt Relief To Borrowers And Financially Stressed Households And That Will Come At A Very High Cost To The Us Taxpayer. And The Plan Does Nothing To Resolve The Severe Stress In Money Markets And Interbank Markets That Are Now Close To A Systemic Meltdown.

Once You Run Current-account Deficits, You Depend On The Kindness Of Strangers. This Might Be The Beginning Of The End Of The American Empire.

I Believe Investors Should Invest For The Long Run, So I Don't Buy And Sell. I Usually Maintain The Classic Index Of Global Equities, Diversified U.s. And Global And Emerging Markets, And When The Risk Is Larger, I Diminish The Amount In Global Equities And Put More Into Liquid Assets - But Very Irregularly.

I Believe, Unlike People That Are Totally Free-market, Laissez-faire Fundamentalists, That There Is An Important Role That The Government Can Play - One, In Providing Public Goods, Whether It's Education, Health Care, Or Other Things, And Two, Supervising Countercyclical Policy - Stimulus, Whether It's Monetary, Fiscal, Or Otherwise.

Gold Has No Increasing Value. And If You're Really Worried About, Say, Inflation Rising, I Would Buy Spam. You Know, You Can Eat Spam. You Cannot Eat Gold.

Edward Conard Provides A Provocative Interpretation Of The Causes Of The Global Financial Crisis And The Policies Needed To Return To Rapid Growth. Whether You Agree Or Not, This Analysis Is Well Worth Reading.

If You Worry About Financial Armageddon, It Is Indeed Metaphorically The Time To Stock Your Bunker With Guns, Ammunition, Canned Food And Gold Bars.

Trending Author

Category