Nouriel Roubini: Bloomberg Interview on Banking Crisis Plan

Yesterday, Nouriel Roubini, Professor of Business at New York University and most prescient prognosticator of the bubble, gave an interview to Bloomberg Radio. This is one of the most comprehensive interviews I have heard him give.

It is definitely worth listening to. Below is the Bloomberg summary of the interview highlights.

Click here to play.

Nouriel Roubini, chairman of Roubini Global Economics and an economics professor at New York University’s Stern School of Business, talks with Bloomberg’s Ken Prewitt and Tom Keene about the government’s $700 billion plan to revive the credit markets, the state of the banking system and the outlook for the economy and financial markets. (Source: Bloomberg)

00:00 “Complete breakdown” of interbank lending
01:09 Treasury’s rescue plan “completely flawed”
03:04 “Good thing” that House rejected plan
05:50 “Silent” run on banks, need for “triage”
07:53 “The recession is going to be severe.”
08:50 Temporary “blanket guarantee” on deposits
12:21 Lehman’s collapse; bank crisis; hedge funds
16:43 European banks; credit-default swap market
20:57 Outlook for congressional action on rescue
22:53 “At this point, anybody can collapse.”
24:22 Need for “massive consolidation” among banks
26:03 Effects of bank crisis; market regulation
32:59 Mortgage rates; household debt; inflation
36:00 Bush’s remarks on financial rescue
38:14 Need to “rethink” financial system
39:26 Investment strategy; European banks
41:20 Banks’ exposure to Fannie, Freddie
42:16 Central bank monetary policy

Running time 43:51

Sources
Roubini Sees `Silent’ Run on Banks, Urges `Triage’: Audio – Bloomberg
Roubini Sees `Silent’ Run on Banks, Urges `Triage’: Bloomberg Radio Interview – RGE Monitor