Nouriel Roubini: Rapid economic recovery unlikely

AEI Event: " The Deflating Bubble, Part VI: The Lessons of the Bubble and Crisis," Cosponsored by the Professional Risk Managers' International Association, October 22, 2009 http://www.aei.org/event/100152

Credit markets have recovered, although they still reflect massive government financial intervention. The financial panic of 2008 and 2009 has passed, though now bank failures are notably increasing. The net worth of the Federal Deposit Insurance Corporation is dropping, and estimates for its deficit are growing, but its obligations are ultimately U.S. Treasury obligations. Average house prices seem to be stabilizing, but commercial real estate prices are dropping. Huge losses from the deflation of the great twenty-first-century bubble have been recognized or realized, and though more remain, financial markets have regained their appetite for risk.

At this event, our expert Deflating Bubble panel defined the lessons of the whole twenty-first-century financial experience and made related recommendations for future financial policy. Speakers included AEI economists Desmond Lachman and John H. Makin; New York University professor of economics Nouriel Roubini; R. Christopher Whalen, managing director of Institutional Risk Analytics; and Thomas Zimmerman, managing director at UBS Investment Bank. AEI resident fellow Alex J. Pollock moderated.

Category:

News & Politics

Tags:

• Nouriel Roubini
• AEI
• New York University
• financial crisis
• economic recovery
• job losses
• unemployment
• budget deficit
• labor market
• anemic recovery

[Visfen]

Wonder if he will get flack for being wrong on the double dip (which is what is happening as we speak).

[bweazel]

So... I'm confused here, which came first... the economy or the economic equations? Haha, what is controlling what here? *sigh* Economists... about as logical as a rock.

[ChaoticSouls]

he is neokeynes. But I know libertarians who like him because he does share some of their views.

[whoo689]

Nouriel Roubini at an AEI panel?? Isn't he a Keynesian? Was he just invited to give the panel balance between diff. points of view or wut?