Nouriel Roubini : In my view what's happening in Greece is just the tip of an iceberg , ...we socialized these private losses , now we have large budget deficits in Europe in Japan in the United States the bond market vigilantes are waking up in Greece in Portugal in Spain at some point they are going to wake up in UK in Japan in the United States we are running a trillion and half deficit it is obviously over time not sustainable ....
America's debt is unsustainable says Nouriel Roubini , for now the FED can keep interest rates at Zero and the rest of the world is financing us but this situation cannot last forever.
I heard that Britain is under 218b debt. well, they are pounds though... more things are being dug up
Nouriel Roubini : The IMF is expecting three more years of recession in Greece most likely you will have recession in Spain in Portugal in Italy and the question is political again : can you afford have several years of recession and deflation there may be at some point a backlash against it three of these countries have also lost competitiveness in the last few years , they are losing market shares to China and Asia because their exports are labor intensive then for a decade their wages are growing faster than the productivity , and the final nail in the coffin was the appreciation of the Euro between 2000 and 2008 , so even if they stabilize their public debt how are they going to reduce their larger currency deficit..., it is going to be ugly in terms of fiscal austerity in terms of structural forms in terms of anemic growth if not recession therefore there is money on the table but it is all conditional on doing very painful sacrifices , I feel that some countries like Greece are not going to be able to do it , that eventually they are going to have a restructuring of public debt .....
Credit markets have recovered, although they still reflect massive government financial intervention. The financial panic of 2008 and 2009 has passed, though now bank failures are notably increasing. The net worth of the Federal Deposit Insurance Corporation is dropping, and estimates for its deficit are growing, but its obligations are ultimately U.S. Treasury obligations. Average house prices seem to be stabilizing, but commercial real estate prices are dropping. Huge losses from the deflation of the great twenty-first-century bubble have been recognized or realized, and though more remain, financial markets have regained their appetite for risk.
Mr Financial News guru Ronney(6)9
ECB will could be the next BOJ = zero interest rates
Originally posted by Just_do_it_lah:Mr Financial News guru Ronney(6)9
ECB will could be the next BOJ = zero interest rates
haha no lar. its good to read and hear the views of these gurus and then you can decide portfolio to invest in.
of course lar, interest rates are kept at near zero now for US and Europe. the only country in the world to raise their interest rates is Australia.