This is a compelling talk by Nouriel Roubini, he talks about the way that financial crises are predictable, and that they don’t come out of nowhere, rather they are the rational conclusion of the factors that combine to lead up to it. A great video and well worth watching.
Nassim Taleb says in this interview that the debt problems of 2010 are worse than those of 2008, he has re-released his now famous book ‘Black Swan’, and his core belief presently is that recession is not the issue, debt is the issue. Fragility is exacerbated by high levels of debt – we can see that from an Irish context on Sovereign Debt/Bank Debt (whether the problem is real or perceived).
One of the most poignant things Taleb talks about is the failure of stimulus, and he rightly points out that Greece is not being asked to ‘stimulate’ their way out of their debt issues, they are being asked to look for austerity solutions, perhaps Keynesian beliefs might be shunted once again into history?
The point holds true in our opinion, high levels of debt are a wealth destroyer and inhibitor to prosperity, the drag on economies, in particular our own, will be evident for many years to come.
Nassim Taleb, a well known professor, economist and risk management adviser talks about the failure of allowing failure, that we are not witnessing ‘change’ in the banking system, rather just a changing the guard. His points are valid and thought provoking, I also find myself unable to disagree with him too readily.
Two world renowned commentators give their views on the economy and market. The points they are making are that the same people are in charge, the system is not fundamentally changing, and that drastic measures are required in order to solve the financial crisis.
The main points made are that cash is king, the bottom has not fully been reached, and that we need to change the way the economy is driven, we need to get back to real physical capital rather than unproductive activities such as housing and finance.