Yes, getting closer. The eurozone could be first.
All due to errant political responses.
This did not have to happen.
Operationally it’s a simple matter for governments to spend their way out of it.
The problem is political, mainly due to ignorance of monetary operations and how a non-convertible currency functions.
Roubini says forecast of Market shutdown coming true
By Ben Sills and Amanda Ross-Thomas
Oct. 24 (Bloomberg) — New York University Professor Nouriel Roubini said the suspension of U.S. futures trading today shows his prediction that financial markets will be shut down amid panic selling is coming true.
“This morning, even before the markets in the U.S. opened, the S&P futures fell by more than their daily limit,” resulting in futures trading being halted, Roubini told a conference in Madrid today. “What I said yesterday has already started.”
Roubini said yesterday that policy makers may need to shut down financial markets for a week or two as investors dump more assets. In July 2006 he predicted the financial crisis and in February this year he forecast a “catastrophic” meltdown that central bankers would fail to
prevent, leading to the bankruptcy of large banks exposed to mortgages and a “sharp drop” in equities.
Roubini said today that the risks of a “multi-year economic stagnation” in the U.S. are increasing. “Things are getting worse, they are not getting better,” he said. “There’s a growing risk of something worse, an L-shaped recession.”
Roubini, a former senior adviser to the U.S. Treasury Department, said earlier this month that the world’s biggest economy will suffer its worst recession in 40 years.
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Warren, if the structural issues with the Eurozone were fixed i.e., giving the ECB authority to fiscal spend to support aggregate demand and national banks and if a large fiscal stimulus was put in place (like a payroll tax holiday) in the U.S. could further impairment to the financial sytem be avoided?
Watching galbraith talk about raising social security made all the old seniors around me salivate, they can’t wait to see the few workers left in the community taxed to death. Really you go to the restaurants and car repair places around my community and it is like 1000 old retired snowbirds to 1 pathetic overworked young person who is about to go postal – Sada and friends didn’t have enough babies and in my community at least there just aren’t enough young people to do all the things the old people need and want.
http://online.barrons.com/article/SB122482470725666021.html?mod=b_hpp_9_0002_b_online_exclusives_weekday_r1
Warren the article above concerns me, I buy lots of stuff in wal-mart that is made in taiwan – if they are rebuking the US government and her credit quality what can I expect in the future from the people that make most of the stuff I use?
Hoover–that article is complete rubbish. See mandatory readings.
with dollar going up, imports are cheaper than they would have been.
good for us, bad for them, IF we understand the political response option of adding to US domestic demand to allow us to buy the imports and everything we can produce at full employment levels.
Thanks Warren.
“adding to US domestic demand ”
My girlfriend last night was bragging to her friends how her new 1000 dollar louis vitton handbag was the 19th addition to her collection after they watched Beverly Hills Chihuahua – and she was so happy the US dollar was gaining strength because now her boyfriend could buy her more! What useful purpose does this serve any of us borg? It’s like a huge useless rube goldberg machine.
My holy mission from Jezus is to see shopping machine princess slowdown, not speed up. Too much materialistic consumption as it is from where I sit. If taiwan is not going to spend their dollar hoards on worthless american securities, where else can they dump the clownbucks? I vote they should start buying louis vitton handbag collections, if for no other reason to keep my girlfriend from getting ahead of them – that is the point of existence right? I am going to go watch that movie with Mike Douglas “Falling Down” and call it a night – D FENS
Whoever you are, I love you. Your comments are kind of silly but right on point. You know what you are talking about. Keep it up.
Hoover, wouldn’t a low dollar help you to pay for that fountain of youth technology you want if it were produced by foreigners?
Cuthceon, my own countrymen don’t like me, much less foreigners, they definitely don’t won’t me cloning myself and then extending the life of me and all my clones. For example, if there were 50 other “trolls” here as I have been accused who thought and posted similarly, I am certain Sada and others would take more extreme measures to censor them from taking parking space in their head. This registration function is just the first step in preventing the “encroachment” But Sada watched too many reruns of the Matrix – in real life you aren’t going to stop all those agent smith clones – no matter how awesome you think you are as THE ONE. 😉
Now more specifically to your point – if you go to http://www.house.gov and poke around at a lot of genetic research and cloning legislation, I think you will discover the USA has really dropped the ball when it comes to this stuff. Apparently the followers of Jezus and Jehovah over in DC feel this is not ethical and when god talks to them in their sleep he says science and fruits of knowledge are evil – just read about Genesis and Eve if you don’t believe me. So just as soon as I tried to send my US billions to pay off some guys in russia or turkey or italy or germany to do some research for me “island of Dr. Moreau” style I can see CIA jackal types intervening to prevent my US dollars from supporting things their GOVERNMENT bosses don’t like – like they do now siezing terrist bank accounts and preventing pensions and the like from investing in companies or countries affiliated with the terrist AXIS of Satan!
Captain Nemo told me the only way to get what you want in this world is to get away from all those folks who have different ideaologies than you, do your own thing, and then never share – so go watch that movie “tuck everlasting” – if you had the fountain of youth and could live billions of years – why would you give it to me an the other trolls who use up your resources and aggrvate you to no end frustrating you day after day where witholding the fountain of youth would ensure I would go away eventually after I died.