U Shaped or Double Dip – Economic Risks Are Rising

U.S. Growth Outlook:  Still Anemic and U-Shaped but Risks of a Double-Dip Recession Are Rising by Nouriel Roubini A slew of poor economic data over the past two weeks suggests that the U.S. economy in 2010 is headed for – at best – a U-shaped recovery. The macro news, including data on consumer confidence, home [...]

Bulls Ignore Warnings from Soros Roubini and Other Skeptics

After a two-week decline which brought the Dow down 3.5%, the bulls are reasserting themselves to start this week. Building on Monday’s rally, global stocks were higher Tuesday amid renewed weakness in the dollar.In recent trading, the Dow was up 1.1% the S&P by 1.3% and the Nasdaq by 1.5%. Commodities rallied sharply, led by [...]

We need a Nationalization of our Insolvent Banks

On Nouriel Roubini’s Global EconoMonitor, Nouriel Roubini argues that it is time for ‘Plan N’, namely a nationalization of insolvent banking systems. The very cumbersome U.S. Treasury proposal to dispose of toxic assets – presented by Treasury Secretary Tim Geithner – can be best understood as a combination of removing toxic assets off the banks’ [...]

U.S. Lost 598,000 Jobs in January

Unemployment Rate Jumped to 7.6% Jan 2009: Payrolls fell 598,000 (biggest monthly decline since Dec 1974) after falling by 577,000 in Dec and 597,000 in Nov 2008, Unemployment rate rose from 7.2% in Dec 2008 to 7.6% in Jan (a 16-yr high) Payrolls have declined 3.57 mn since start of the recession in Dec 2007 [...]

The U.S. Banking System is Close to Insolvency

ALERT RGE Monitor January 22, 2009 RGE Monitor Estimates $3.6 Trillion Loan and Securities Losses in the U.S. Nouriel Roubini and Elisa Parisi-Capone of RGE Monitor release new estimates for expected loan losses and writedowns on U.S. originated securitizations: * Loan losses on a total of $12.37 trillion unsecuritized loans are expected to reach $1.6 [...]

Nouriel Roubini warns that the worst is yet to come

RGE Content: Weekly Roundup RGE Lead Analysts | Nov 1, 2008 On Nouriel Roubini’s Global EconoMonitor, Nouriel Roubini warns that the worst in markets and economies is yet to come.   On October 23rd, Nouriel predicted the potential shutdown of financial markets.   A day later U.S. stock futures suspended trading after declines of more than 6% [...]

Can The US Federal Reserve Go Broke?

Can Central Banks Go Broke? Fed Refuses To Disclose Collateral Composition And Recipients Of $2.8 Trillion Loans The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the U.S. GDP, to rescue the financial system since the credit markets seized up 15 months ago. Bernanke’s Fed is [...]