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]

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]

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

[BurtonOerney]

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

[BurtonOerney]

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]

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]

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]

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

[CAP6]

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.

[vorpalmusic]

He was saying the same things for many years now, no one listened. And clearly from the majority of the comments here, still no one is listening.

[CAP6]

If you don't know who Nouriel Roubini is - you should.

Roubini made a name for himself by correctly predicting the housing bust and deep recession that we currently find ourselves in.

Nouriel Roubini is a professor of economics at the Stern School of Business at New York University. He has been given the nickname "Dr. Doom" due to his incredibly pessimistic views on the future of the global economy.

That being said - his pessimistic views have largely come true, leading some to call him a "prophet" and "sage". His views are respected and he has appeared before Congress and the World Economic Forum.

To give you an idea of how accurate his predictions were, I give you one of his quotes taken from September 2006. This quote was taken from his speech to the International Monetary Fund:

"In the coming years, the United States will likely face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence and, ultimately, a deep recession."

He said that he saw "homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt."

WOW. If that doesn't sum up the past few years, then I don't know what does.
http://www.davemanuel.com/2009/01/23/nouriel-roubini-predicts-more-pain-for-global-equities-in-2009/

[cygnus workstation]

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]

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]

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]

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

[garymc8]

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]

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]

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]

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

[sueno]

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]

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

[CydMiller]

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

[jsgaetano]

If he's only interested in Wall Street, then why isn't he blowing sunshine up everyone's butts, just like all the other economists?

I have nothing but contempt for economists who were praising the Bush administration for eight years, but all of a sudden are whining now. On the other hand, if someone was correctly telling everyone how much damage the "Bush Boom" was going to do to the country, they actually have something called credibility- I'll listen to what they have to say now, good or bad.

[CAP6]

Well said. Roubini was telling it like it was, even under Bush but nobody was listening because his message ran counter to the Bush doctrine. Seems we have come full circle, now it's the left that doesn't want to hear what may well be the truth because the message is seen as being critical of the Administration. Others reject the Roubini comments only because of the forum in which it was presented. That's a whole he// of a lot like ignoring a hurricane warning because you saw it on TV as opposed to hearing it on the radio.

[rollingdivision]

Obama and Democratic Congress incompetent.

[GrantedBKNY]

Me want food goto eat.

[vorpalmusic]

Oh thank! Now me hungry too!

[rhettab]

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

[TNFarmer]

Perhaps they are. But they are heads and shoulders above our last bunch of Republican leaders. Keep rolling, you've gathered to much moss with your boys Dubya, Darth, Rummie, etc. out of power.

[persimmon8]

That's because it is ultimately for the populace to take responsibility for ourselves through cooperative community with each other and organizing against entrenched money and power interest who will never change anything...it is against their self-interest. They are the 'stave in the wheels' that prevent real positive changes to occur for ordinary people on main street.

[charitabledonation]

You must be part of the 12% of this country that doesn't know of believe that Hawaii is a state?

[earlyblue]

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]

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]

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]

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]

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]

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]

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]

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.

[vm12608]

Absolutely, Obama is rewarding the folks who caused the problems as well as refusing to bring charges against any save the most egregious, high profile Madoffs. Further, he permits business as usual by not forcing elimination of such damaging financial vehicles as credit default swaps not to mention the extraordinary level of toxic assets.

But let's be fair to Obama or really anyone in his position...there is no fighting the financial titans here or anywhere else in the world. I did and still support Obama because I can't figure out how anyone with even two brain cells can be Republican these days. Talk about the lunatic fringe...for goodness sakes...these people are crazy and getting violent in their excess.

How is it these so-called grass roots Repubs aren't up in arms about the Wall Street guys? The money they are taking home boggles the mind. I believe in incentives and bonuses as motivators, but really folks...take a look at Bloomberg's list of the top paid CEOs if you really want to throw up...8 of the top 10 were oil and gas executives (of course), some garnering in excess of $550 million a year! Obviously not all salary. Stock options and vestments from taking companies public etc contribute to those unconscionable numbers, but c'mon anyone who does not believe we have lost all sense of proportion, perspective and common sense has to be a drooling, blubbering fool.