Last night Nouriel Roubini was interviewed on the general interest late-night CBC TV talk program The Hour. The full video encounter is archived here (runs a bit over 10 minutes). The following is the explanatory matter CBC put on the video site.
About this Video
Nouriel Roubini, AKA ‘Dr. Doom’, predicted our current credit crisis way back in 2005 and it’s not the first time. He also called the stock market crash of 1987. A lot of banks made a lot of bad loans, to people who shouldn’t have got them. When the housing market collapsed, those people missed payments or stopped paying altogether. The banks had to foreclose on a lot of houses. Problem was, the houses were worth a lot less than the loans taken out on them and the banks were left with ‘toxic assets.’ That’s why the U.S. government has had to step in – with those multi-billion dollar bailouts. But a lot of questions remain… Should the U.S. government nationalize banks? And the bigger question – how do governments around the world prevent a global depression?
Twist please note Roubini’s reference (shortly after 2:00 on the interview) to the new "Ghost Towns" around Las Vegas.
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He is one of the few people you can believe. And yes we should nationalize the banks or how will we ever trust anything they say again.
I don’t know, we could trust them by perhaps enforcing these accounting rules that require them to state actual assets/earnings. The government is hiding more information than anyone about the bank’s status – last I saw they’re delaying the “stress test” results until after quarterly earnings, and may or may not simply release a summary with no way to identify *which* banks are in trouble – so I’d have to assume nationalizing would simply attempt to cover everything up.
I thought they were relaxing the mark to market accounting rules so now all the banks can value their assets mark to fantasy. How can they hope to attract new investments by doing this we know it stinks to high heaven. Their only source of funding now is the taxpayer.