Archive for April, 2011
Speech of Nouriel Roubini at the Symposium of the Banque de France on March 4th 2011
I think that this is a very important conference, especially because, as we know, this year is the G20 presidency of France; and France has put on the table the important question of how to reform the international monetary system (IMS). The topics we are discussing today including the issue of global imbalances are essential.
S&P’s decision to cut its outlook for U.S. government debt from stable to negative—a historic first—sent markets tumbling: On April 18, the Dow Jones Industrial Average and the S&P 500 both recorded their biggest one-day drops in nearly a month (though U.S. Treasurys and the dollar did well). The landmark outlook downgrade reinforces what we have been saying since 2010: The United States is on an unsustainable fiscal path from which it cannot exit without political consensus. The key question is whether the gridlocked U.S. political system can respond in time to avert a bond market revolt.
I recently took two trips to China just as the government launched its 12th Five-Year Plan to rebalance the long-term growth model. My meetings deepened my own impression and the long-standing RGE view of a potentially destabilizing contradiction between China’s short- and medium-term economic performance: The economy is overheating here and now, but China’s overinvestment will prove deflationary both domestically and globally.
April 4 (Bloomberg) — Economists and strategists talk about the outlook for the European Central Bank’s monetary policy decision on April 7 and the impact on the region’s debt crisis. This report compiles comment from New York University Professor Nouriel Roubini, Pacific Investment Management Co.’s Andrew Bosomworth, Westpac Banking Corp.’s James Shugg, HSBC Holdings Plc’s Stephen King, Deutsche Bank AG’s Thomas Mayer, Ignis Asset Management’s Stuart Thomson, Credit Agricole Corporate & Investment Bank’s Adam Myers and FXPro Financial Services Ltd.’s Simon Smith. (Source: Bloomberg)
Bloomberg — Nouriel Roubini, the New York University economist who predicted the financial crisis, talks about the outlook for monetary policy by the Federal Reserve and the European Central Bank. He speaks from Cernobbio, Italy, with Maryam Nemazee on Bloomberg Television’s “The Pulse.” Click for Video:
CNBC — Irish Banks May Break Government: Roubini (Click for Video)
CNBC — Putting Irish banks’ losses on the government’s balance sheet risks breaking up the government, Nouriel Roubini, Chairman of Roubini Global Economics, said.
CNBC — Bank Risk Breaking Back of Irish Government: Roubini
By Jessica Hartogs and Antonia Oprita
Recapitalizing Irish banks would be bad if done with government money, because it would affect the country’s ability to fund itself even further, Nouriel Roubini, chairman of Roubini Global Economics, told CNBC on Friday.