Financial Crisis Debate (6 of 13) Nouriel Roubini

The goal of IQ2 US is to raise the level of public discourse on our most challenging issues. To provide a new forum for intelligent discussion, grounded in facts and informed by reasoned analysis. To transcend the toxically emotional and the reflexively ideological. To encourage recognition that the opposing side has intellectually respectable views. To engage the live audience as active participants who will ask questions and decide which speakers have carried the day by voting on the motions both before and after the debate.

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[equsnarnd]

The idea that Washington was a wild west when it came to business tags Roubini as a total nut job. I like what he has to say until he gets his rhetoric twisted around the facts and the reality which leads him to say such idiotic things.

[Zeldovich]

@bonfirejovi

lol You must have no idea what decoupling means. When the world economy dips and the dollar rises, as has occurred for many decades, it means we still can sneeze without the rest of the world catching a cold.

The US is responsible for 25% of global aggregate demand, so how do you think we can sink without affecting the rest of the world?

That's just dumb.

[bonfirejovi]

@Zeldovich Decoupling is happening now and Schiff more than made back the amount lost in 2008 in 2009. Also it wasn't 70% and it only applied to a minority of his clients. Why have you just focussed on one year in the last 10 years? Btw Gold is at $1270!

[Zeldovich]

@jvittetoe

1.) Would you rather be a long term trader who understood decoupling was a farce and be cash heavy, as Roubini was, or take a 70% hit, like Schiff's investors? .

2.) It's not just the money lost, even for those who are still with him. It's also the money they could have made. This is opportunity cost

3.) Apparently, you're subject to the fallacy of composition, in which case we have no basis for further discussion.

[jvittetoe]

@Zeldovich

1. Schiff is an investor, not a short term trader. Real investing is susceptible to these type of corrections.

2. Those investors were only wiped out if they sold. I'm sure they were advised not to as they would have seen significant gains from their lows by now.

3. I love the term 'macro'economics. As if the laws governing 'micro'economics magically change when governments (nothing more than a collection of individuals) enter in to the picture.

[Zeldovich]

@jvittetoe

Naturally, he was dead wrong, and the dollar rose 31% in value during the crisis, with many of his investors being wiped out. He brags that his clients have enjoyed significant appreciation since, but they are still well below early 2008 levels.

[Zeldovich]

@jvittetoe

Schiff is just an ignorant stock broker. He was right about the real estate market, but he's clueless about macroeconomics. For example, his portfolio in 2008 assumed that there would be decoupling during a financial crisis, even though the US and EU account for around 50$ of world aggregate demand.

[JohnAdamCulligan]

Roubini offers the best-structured, most effective argument of anyone so far.

[emperor1804]

Hi, I'm making a documentary on the financial crisis for my high school English class and I was wondering if I'd be able to use this clip for it. Thanks.

[DinaStrange]

I love N.