T Nation

Famous Economist Predicts Collapse


Nouriel Roubini, NYU prof, famous for his accuracy, predicts utter collapse and closing of markets in wake of crashing hedge funds.

"Oct. 23 (Bloomberg) -- Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.

We've reached a situation of sheer panic,'' Roubini, who predicted the financial crisis in 2006, said at a conference in London today.There will be massive dumping of assets,'' and hundreds of hedge funds are going to go bust,'' he said.

Group of Seven policy makers have stopped short of market suspensions to stem the crisis after the U.S. pledged on Oct. 14 to invest about $125 billion in nine banks and the Federal Reserve led a global coordinated move to cut interest rates on Oct. 8. Emmanuel Roman, co-chief executive officer at GLG Partners Inc., said today that as many as 30 percent of hedge funds will close.

Systemic risk has become bigger and bigger,'' Roubini said at the Hedge 2008 conference.We're seeing the beginning of a run on a big chunk of the hedge funds,'' and don't be surprised if policy makers need to close down markets for a week or two in coming days,'' he said.

Roubini predicted in July 2006 that the U.S. would enter an economic recession. In February this year, he forecast a catastrophic'' financial meltdown that central bankers would fail to prevent, leading to the bankruptcy of large banks exposed to mortgages and asharp drop'' in equities."

When someone like this speaks, we should listen. Couple this with an Obama-Reid-Pelosi government...


We need tax increases and new government programs.


Well, the following, if true, is frightening. By the way, none of it requires a "conspiracy" (a much abused word on this forum) to be true.

When you combine perceived or real crises with:

  1. The newly-minted presidential powers via the 2007 Defense Authorization Act making it legal for the US military to be deployed against its own citizens:


  1. On October 1st, the first brigade of the 3rd infantry division was deployed for active duty within the US. This is a permanent, standing Army on American soil:


  1. The $700 billion ("rushed," "emergency") bailout bill apparently includes fine print giving the President $100 billion in "discretionary spending," sans oversight.

We, then, possibly, have a President with his own army, his own treasury, and the power to do what he wishes in the name of security in a crises.

In short, what we may have here is - perhaps - the makings of a police state just waiting for the wrong (or right?) man to take the helm.


George Orwell wrote something like this once...


If Obama wins, we will in effect have one party rule. In a time of economic collapse, they could do many things without opposition. The press has been so corrupted that what's happening is suppressed. That's why they make every effort to portray Sarah Palin as an idiot, for ex.

Where are the cameras when Michelle Obama meets with Bernadette Dohrn? They were busy seeing if Palin had a unpaid parking ticket. Let's ask ourselves why sometime.


We were destined for that anyway, given the demographic trends in the United States. If the Republicans were interested in continuing as a national party, they would have shut down the borders about 20 years ago.


Probably that's broadly true. Often, though, the immigrants I meet here in Boston - of all socio-economic classes - seem more educated about the nature of the US (its constitution, it's history, its freedoms, the centrality of capitalism etc.) than many of our native born, college educated citizens.


Hasn't this guy been predicting economic collapse for over 30 years?

If it the same guy I am thinking of he makes about a million predictions and most of them are totally wrong.


Something about how even a broken clock is right twice a day? :slightly_smiling:


He's not alone.

S&P stocks to lose 50% MORE?