Arianna Discusses Banks and the Economy with Nouriel Roubini on CNBC's Squawk Box

Arianna and the Squawk Box team talked with Nouriel Roubini on CNBC this morning. Hear Roubini's opinion on the latest plan to deal with toxic assets and his bearish economic outlook below.

Comments

[tbonehead]

Did he check his findings with Limbo, hannity, Beck and Cavuto? Otherwise, I'm suspect.

[dl63]

This guy is good. He talks facts while the carnival barkers at CNBC talk optimism as if that makes all what's bad with the economy melt away. We'll see. I'm glad they challenged him as the strength of his argument was revealed. I wish these guys would challenge the carnival barkers they bring on their show with equal zeal, but that's hoping for too much in the corporate media.

[ImmanuelGoldstein]

Roubini has been smeared as something called a perma-bear, that is someone who is always bearish.
The problem with recognizing the underlying unreliability of a system is that it can be hard or impossible to predict the point at which it will fail.
It's one thing to look at the plans of the Titanic and say 'you are using the wrong kind of steel on the rivets and that makes this ship unsafe (as we now know to be the case) , thats just engineering. It's also simple when knowing this to say "I recommend you don't ride the Titanic ". The systemic risk of the bad rivets might take years to reveal itself in practice. If the Titanic hadn't hit the iceberg it might have gone on to lead a normal life , wind up in the breakers yard and vanished into obscurity.
But that wouldn't change the fact that the Titanic was a risky ship that was not robust enough to survive a particular type of systemic stress. And if all along that time frame I kept recommending 'don't ride the Titanic' I would have been a 'Titanic perma-bear'.

[mikecal]

A solid analysis. Definitely worth taking very seriously.

[AngieMom57]

Please someone put this man in a position of power, much easier on the eyes and ears than genius Geithner..­.

[plainsman]

I always enjoy watching Roubini speak. Good interview.

[janpradder]

Roubini seems to be very cautiously optimistic about the economic recovery. He is also rather positive about Geithner's bank plan with caveats. Now Arianna, are you going to back off a little now on the way the president is dealing with the economy?

[steveRB]

Which interview did you watch? He predicted the Dow would fall below the lows we saw earlier in the year(to 6000) , Geithner's plan will only help solvent banks, insolvent banks will still need to be nationalized, unemployment will rise above 10% and housing prices will fall another 15-20%. He did say that the risk of depression has lowered. I guess that can be considered optimism.