Roubini: Government-Backed Bank May Crack

As the Dow drops below the so called November test, Hogan's bottom etc., Nouriel is stoking the fire:

The process of socializing the private losses from this crisis has already moved many of the liabilities of the private sector onto the books of the sovereign,” Roubini wrote on his Web site today. “At some point a sovereign bank may crack, in which case the ability of the governments to credibly commit to act as a backstop for the financial system -- including deposit guarantees -- could come unglued."

The one-man systemic wrecking crew also sees a 30% chance of an L-shaped near depression without appropriate and aggressive policy action by the U.S. and major foreign economies.

The global economy is now literally in free fall as the contraction of consumption, capital spending, residential investment, production employment, exports and imports is accelerating rather than decelerating,” Roubini said.

The protracted downturn Roubini warned of can only be prevented by “a strong, aggressive, coherent and credible combination of monetary easing (traditional and unorthodox),fiscal stimulus, proper clean-up of the financial system and reduction of the debt burden of insolvent private agents (households and non-financial companies),” he said.

Lovely.

Comments

[monday1929:]

The systemic wrecking crew was led by the Terroristic Banks and paid off regulators whose leaders need to be tried for treason. Those pointing out the facts are not the enemy, especially since we tried in vain to warn you.

Feb 20 09:13 AM

[K Ackermann:]

Proper cleanup of the financial system?

That will take a lot of lead.

If we can get them in a straight line, how many heads can a bullet crash through?

Feb 20 10:40 AM

[Stock Marke...:]

This guy IS a one-man socialist recking crew...

Russia is going to crack or someone in the Middle East and we throw the fear of God into the US?

Lovely, is right.

Feb 20 10:50 AM

[bosun.j:]

Depends on caliber, weight and material of the slug and muzzle velocity.


On Feb 20 10:40 AM K Ackermann wrote:

> Proper cleanup of the financial system?
>
> That will take a lot of lead.
>
> If we can get them in a straight line, how many heads can a bullet
> crash through?

Feb 20 10:50 AM

[John02144:]

The real Tyler Durden would cherish this time.

Feb 20 01:46 PM

[The AntiCramer:]

Don't forget their enablers in Congress.


On Feb 20 09:13 AM monday1929 wrote:

> The systemic wrecking crew was led by the Terroristic Banks and paid
> off regulators whose leaders need to be tried for treason. Those
> pointing out the facts are not the enemy, especially since we tried
> in vain to warn you.

Feb 20 06:57 PM

[Honey:]

I for one cannot wait for the Government to nationalize Citibank and Bank of America.

Feb 21 02:46 PM

[Al-USA:]

The only surprising thing is that the Elites are surprised, or so it seems, that capitalism has come to this. Or, perhaps, they knew and planned on getting bailed out all along....

This is not good for the viability of the American Republic .

Feb 22 06:28 AM