Words matter. These are the best Nouriel Roubini Quotes, and they’re great for sharing with your friends.
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 trouble is that the average trader on Wall Street, he or she is so young, he doesn’t even remember the recession of 2001, let alone the previous one.
If you worry about financial Armageddon, it is indeed metaphorically the time to stock your bunker with guns, ammunition, canned food and gold bars.
The economic costs, the financial costs, the job losses, the income losses, the fiscal costs of bailing out financial system are becoming larger and larger.
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.
The U.S. has been living in a situation of excesses for too long. Consumers were out spending more than their income and the country was spending more than its income, running up large current-account deficits. Now we have to tighten our belts and save more.
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 don’t personally consider myself Dr. Doom. I call myself Dr. Realist, even though it’s less exciting and more boring than being called Dr. Doom. If you are consistently saying ‘the world is going to end,’ who is going to listen to you?
No country can be complacent in making sure that excessive debt of the household doesn’t create excesses and weaknesses in the financial system. Everything is interconnected.
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’m a rock star among geeks, wonks, and nerds.
For me, geopolitical issues are becoming more important, because how can you understand economy if you don’t understand geopolitics? People think economists just deal with spreadsheets and charts. That’s a narrow-minded caricature.
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.
I’m not a pessimist by nature. I’m not someone who sees things in a bleak way.
