Monday, March 9, 2009
Dr. Doom Ups the Ante
I can't believe this isn't getting more coverage. According to the financial wizards at CNBC:
I haven't seen anyone else claim US output will be zero next year, and I don't even know what it would mean for global GDP to become negative. Would barbers go around chloroforming people and giving them awful haircuts? This recession is serious!
Roubini, who is also known as "Dr. Doom," told CNBC that the risk of a total meltdown has been reversed for now but that the economy is going through "a death by a thousand cuts." He also said that "most of the U.S. financial institutions are entirely insolvent."
...
Earlier in the day, Roubini spoke to the CBOE Risk Management Conference and said he believes total losses could peak at $3.6 trillion in the financial system, with half of that being borne by banks and bank dealers and the other half borne by hedge funds and pension funds, among others.
He said that while U.S. GDP next year could be zero, global GDP could dip into negative territory.
I haven't seen anyone else claim US output will be zero next year, and I don't even know what it would mean for global GDP to become negative. Would barbers go around chloroforming people and giving them awful haircuts? This recession is serious!
Comments:
I just read another story today where Roubini was giving percentage probabilities of a depression or something. I don't get where he comes off with these probabilities. On the one hand, EVERYTHING has a probability when you think about it logically, but on the other hand how the hell would he be making these kind of calculations?
I think my co-blogger James put it best in this post on Roubini: James of DoF on Nouriel Roubini's probabilistic announcements
I think my co-blogger James put it best in this post on Roubini: James of DoF on Nouriel Roubini's probabilistic announcements
Perhaps it should read "GDP growth" instead of just "GDP":
He said that while U.S. GDP [growth] next year could be zero, global GDP [growth] could dip into negative territory.
???
He said that while U.S. GDP [growth] next year could be zero, global GDP [growth] could dip into negative territory.
???
The Blackadder Says:
Perhaps it should read "GDP growth" instead of just "GDP"
Either that, or he's been watching too much NBC.
Perhaps it should read "GDP growth" instead of just "GDP"
Either that, or he's been watching too much NBC.
# posted by 
: March 9, 2009 at 10:43 PM
: March 9, 2009 at 10:43 PM
Roubini has certainly gone off the deepend. It's a shame.. I can think of another NYU professor who's economic advice makes a lot more sense.
Come on guys, of course he was talking about GDP growth. The CNBC writer should be on the missing dog beat, not writing economics stories.
Evidently, the rest of the world will be eating each other in a cannibilistic orgy. Thank God I live in the US.
# posted by : March 10, 2009 at 11:23 AM
: March 10, 2009 at 11:23 AM
So they used a unsigned integer for the US but signed for global? He must be predicting hyperinflation!
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