Roubini, Taleb Talk Economic Recovery, Risk Of Second Recession On CNBC (VIDEO)

Two of the most prominent market cynics appeared on CNBC this morning. Nouriel Roubini -- affectionately known as "Dr. Doom" -- was CNBC's guest host, and Nassim Taleb, the author of The Black Swan, spoke about his views on the market's recent rally.

Not surprisingly, they didn't pull any punches. When asked if he'd modified his characteristically pessimistic take on the economic crisis, Taleb responded with:

"It is a matter of risk and responsibility, and I think the risks that were there before, these problems are still there. We still have a very high level of debt, we still have leadership that's literally incompetent ..."

It you think that's harsh, WATCH:

Roubini, for his part, is not nearly as pessimistic as he used to be. In fact, he jokingly rebranded himself as "Dr. Realist." But, in the below segment he warns of a risk of a double-dip recession. The banking sector, Roubini said, is in no way out of the woods. Citigroup, Roubini pointed out, "was not effectively nationalized, but is still largely owned by the government."

On real estate, Roubini didn't back away from his claim that real estate prices would fall 40 percent cumulatively from their pre-crisis highs.

WATCH:

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Comments

[UNCLEJOE]

04:28 AM on 08/15/2009

The Federal Reserve Bank (Fed) Is a private company that sells Fiat dollars that is guaranteed for life by the US Government, (tax payer) which holds no shares in this foreign owned and controlled consortium. When the US Government borrows money from the Fed it actually has to pay an interest on the Money that the Fed lends them, the same money that the US Government is guaranteeing the buyers of Fed money which has no collateral of its own but makes Trillions in interest and principal on the money they print out of pure air. ... get the idea, it is a giant PONZI SCEME, and the Tax payer is the sucker of last resort when it comes to Bailouts. And future generations, our progeny, will be stuck with the massive interest payments in the Trillions that the Fed issues without consulting Congress.

Before the Federal Reserve Act of !913, the US Monetary system was controlled by the US Congress as mandated by Article One, Section Eight in the US Constitution; and the US Government loaned money to the banks that had to pay interest to the US Government instead.

The Fed is a leeching redundant financial adjunct to our economy and is a private company controlled by foreign bankers. My father gave me advice only twice in my life, "Never take money from a lady and don't trust Bankers. I am still trying to figure out what he meant by that first advice.

The Fed Must Go !

[knosiswar]

08:38 PM on 08/13/2009

AGREED! But then so is 80% of the American population.

[BurtonOerney]

04:25 PM on 08/13/2009

http://www.erictyson.com/articles/20081024_1

[BurtonOerney]

04:25 PM on 08/13/2009

Roubini was screaming about a financial crisis ten years ago and he'll continue to scream as long as he can. He predicted that oil would remain below $40 for all of 2009. He predicted the recession would last through 2010. He predicted a run on banks and a forced closing of the US stock market. He predicted that the trade deficit, federal reserve interest rate hikes and high oil prices in 2004 would lead to a recession. He predicted that Katrina was a tipping point that would lead to a 2005 recession. Finally, Roubini predicted a sharp recession in Q2 of 2007. I'm glad I don't take his investment advice.

[Andy95]

02:13 PM on 08/13/2009

Why haven't Geithner & Summers done more to clean up this financial mess? And BTW, the Taleb and Roubini is not just a CNBC bias but very similar to what Elizabeth Warren has said that we haven't addressed our toxic assets:

http://www.huffingtonpost.com/2009/08/12/elizabeth-warren-talks-to_n_257488.html

It's the same message that we've told many other countries - that we have to take their our bitter medicine early or things will get worse.

Here's at least one congressional democrat still asking more questions:

http://dailybail.com/home/there-are-no-words-to-describe-the-following-part-ii.html

And now Obama and Congress have moved on to tinker with health care thinking they solved our financial problems with the stimulus and TARP bills.

Anyone know a good play to bet on a double dip?

[LaShanda Jackson]

11:21 AM on 08/13/2009

And where was he during the Bush administration? Its amazing how we have a million experts on the economy now the President Obama is trying to clean up the mess, where were these "experts" lets say even two years ago?

[jojony]

11:32 AM on 08/13/2009

Obama isnt cleaning up anything. What have you been drinking?

[CAP6]

11:37 AM on 08/13/2009

Roubini, I know you are not going to like this, was scre*aming to the Bushies and Congress about the looming financial crisis long before we on Main Street could spell the word subprime. Admit it, your only objection is that Roubini is now being critical of the Administration, your administration, the one you voted for. How does that make you any better than the Bush cronies who not only ignored this man's message, the chastised him like you are now doing when he made pretty much the same comments about the 'W Administration? Roubini was correct then, we shall see if he is correct now.

[cygnus workstation]

11:03 AM on 08/13/2009

at the end of the day it's the middle class that gets scr3wed through inflation' loss of jobs/job security and stagnant wages- a trend that has persisted for decades with the advent of so called 'reagan0mics'

hat tip to http://www.iamned.com

[twb1951]

11:02 AM on 08/13/2009

CNBC and their talking heads, blat, blat, blat, it's like listening to the "Mad Hatter" in Alice's Wonderland. These nit wits were all about protecting our economy prior to the "shrub" financial debacle weren't they?

[CAP6]

11:08 AM on 08/13/2009

You can and may want to ignore the forum, but how the he// can you ignore the guy that predicted the economic crisis we are now experiencing? Would you ignore a storm war*ning because you saw it on TV as opposed to hearing it on the radio?

[LaShanda Jackson]

11:23 AM on 08/13/2009

Please show me or point me to the link where he predicted Bush's economic crisis!!!

[garymc8]

10:54 AM on 08/13/2009

CNBC WORKING IN CAHOOTS WITH THE TEA PARTY? That would make them completely UNOBJECTIVE AS WELL AS TOTALLY UN CREDIBLE. SORRY CNBC. bush was the incompetant one and you were bribed to much to notice,

[adoantarel]

10:38 AM on 08/13/2009

In just reading the quote, I would have asked if he was talking about Wall Street and the large coorporations. They, to me, seem to be and to have been largely in debt and to have incompotent leadership.

[US1st2009]

09:34 AM on 08/13/2009

I greatly appreciate Nassim Taleb's analysis, honesty, and willingness to state in clear unequivocal terms what is wrong and how to fix it. These NBC airheads just watch the daily bouncing balls and get all hyperventilated. Nassim doesn't take his eye off what caused the financial crisis, the bankster treasonous rape and pillage of the American public, and what needs to be done to fix it. I want to see it taken much further, JUSTICE! banksters who raped the American people, caused the crisis, pocketed the profits on the way up for decades by creating nothing but worthless paper and mathematical subterfuge, and then got bailouts to socialize their losses i.e. we and our grandchildren are stuck with the losses, and are now, as Nassim clearly pointed out, being brought in as saviors in the highest government economic decision making positions and as the private investment saviors to buy up the toxic assets THEY CREATED for pennies on the dollar to play several more profit taking angles with federal government i.e. taxpayers guarantees against any and all losses. put these FINANCIAL TERRORISTS in JAIL next to their buddy madoff and C L A W B A C K!

Nouriel Roubini used to be a straight shooter, now he hedges against everything. he now seems more like Dr. Wiggleroom.

Thanks you Nassim! PLEASE keep telling it like it is!

[BurtonOerney]

03:17 PM on 08/13/2009

And then there was one. Oh wait, Elliot Spitzer, too. Two then.

[sueno]

08:04 AM on 08/13/2009

Who believes anything CNBC talks about-
These 'bums' already sold out the country
to full their pockets. Roubini is only interested
whats' good for Wall St.

[earlyblue]

08:06 AM on 08/13/2009

YES, YOU ARE SO RIGHT!!
DEAD ON - NAILED IT!!

[CydMiller]

10:17 AM on 08/13/2009

Do you even know who Roubini is....would it kill you to read a paper?

[rollingdivision]

07:53 AM on 08/13/2009

Obama and Democratic Congress incompetent.

[GrantedBKNY]

08:00 AM on 08/13/2009

Me want food goto eat.

[vorpalmusic]

11:52 AM on 08/13/2009

Oh thank! Now me hungry too!

[rhettab]

08:13 AM on 08/13/2009

...and we got here how??? Bush et al were brilliantly competent huh?

[earlyblue]

07:50 AM on 08/13/2009

Who really gives a damn what these two birdbrains think.
Partisan republican paid propagandists are just so transparent, aren't they?
Especially the "Mad Money" and "Fast Money" TV financial "gurus" like Cramer,
Deutsch, and these two clowns. Work smart (not hard), by gaming the system,
and take your quick profits. Then shelter your ill gotten gains, or hide them overseas,
from the tax man (while screaming for more tax breaks) and then blame the
Democrats, blame the liberals, blame Obama, as they work their butts off to
clean up the gargantuan, unfathomable, and vulgar mess (and chaos) you created.
Can you imagine where we as a nation would be right now if any of these
were trying to fix things??? Instead of diligently working to solve all the problems
they helped create, they would be chomping at the bit . . . salivating over their
next targets . . . the big kahuna's of Social Security, Medicare, Medicaid, and
public education.

[ipresumelikely]

08:06 AM on 08/13/2009

Roubini is FOR regulation of Capitalism...which keeps him out of Republican territory. You need to get over your unbridled support of Obama and temper it with some reality. Obama has chosen the same Reagonomics economic advisors who got us into this mess. Google Rubin and Summers for a start.

[earlyblue]

08:36 AM on 08/13/2009

Ok. The bigger question is the following: How vocal was Roubini (on CNBC) about regulating capitalism, during the prior 8 Bush years and before Bear Stearns tanked? If he was not a commentator at that time - he's disqualified from the discussion - having no credibility whatsoever as a "champion of regulation." Regarding Obama, I freely admit that I do give him the benefit of the doubt at this very early stage in his presidency. I believe he is authentic and is doing all he can to go against the himalayan powers that be. Only 7 months into his presidency people are getting antsy, knowing full well this was a 1-2 year clean up project at best and that foreclosures and bankruptcies will require an even longer timeline. Mad Money, Fast Money, Fast Profits, Predatory Lending, Combining Mortgage Companies with Investment Banks, Credit Default Swaps without Cash Reserves, Fast Recession, Fast Clean up, Fast Anger, Fast Expectations. Where were you guys when we cried the truth about George Bush BEFORE 9/11?

[UNCLEJOE]

07:44 AM on 08/13/2009

Nassim Talebb made a very significant statement that is incontestable, that Obama's big mistake is that he is rewarding the the Fed, the bankers who are responsible for this crises."

Is there anone reading this succinct conclusion made by Taleb who disagrees with Taleb's Statement?

When we know who caused the crisis for their personal enrichment by impoverishing those Americans who least can afford it, and there is no legal way to obtain justice or restitution from these bank robbers who are nurtured by the private consortium, the Federal Reserve Central Bank whose controlling stockholders are foreigners, than America is already on the slippery slope to a Medeval type Serfdom with the Feudal Reserve Barrons calling all the shots; the Feds need only one more power to strangle our remaning freedoms , a power which Obama is naively endorsing, 'Complete control of all Government Financial Regulations. Incredible !

The simple solution to all future Fed orchestrated financial crises is get rid of this multi-headed monster, the Federal Reserve Bank and return the financial and monetary system control of our economy back to the Congress as mandated by the US Constitution in Article # One, Section # Eight.

There is no negotiating, no compromising, no middle road when you deal with The Fed Cabal whose insidious goal is to create a police state under their Oligarchy
The Fed Must Go !

[GrantedBKNY]

07:58 AM on 08/13/2009

What is it with Libertarians and the Fed? Most children out grow their fear of the monster under the bed. And considering the level of thought on display with the Congressional brain trust, I am not comforted by your call to arms.

[joebhed]

07:57 AM on 08/14/2009

No libertarian here, quite the opposite.
And if you really read what JOE is advocating, it is the opposite of what the Libertarians and Austrians believe in.
So, you need to get your facts straight.

Why don't we have a little debate over whether the Fed should be abolished, not because we want Austrian free-banking, but because we want a publicly-controlled money system, a government issue of all money and a debt-free issuance of all money.

Why don't we talk about the money system, the result being the Fed shows up just exactly as described in economists Vladimir Nuri 's book:
"Fractional Reserve Banking as Economic Parasitism".

Why not read: "The Chicago Plan for Monetary Reform".
I'm with UNCLEJOE.
The Money System Common.

[BurtonOerney]

03:13 PM on 08/13/2009

I really want to see hyperinflation. Peter Schiff said it would definitely happen when the small rally petered out at the end of last year. Any day now...

[joebhed]

08:01 AM on 08/14/2009

We're a long way from hyperinflation.
And it can be prevented in the transition from deflation to sound money.
Even though an interest rate increase WILL cause a huge increase in government and private debt-service obligations, without monetary reform we will first visit Irving Fisher's debt-deflation spiral.
Given that the debt-money system is the cause of the problem, at some point we will begin a transition from the Fed's parasitical ponzi-scheme and towards sound money.
As soon as Roubinia and Taleb recognize the enemy among us.
It's not the Fed, per se, it's private fractional-reserve debt-money creation, no matter who does it.