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Roubini On 2013's "Global Perfect Storm" And Greedy Bankers "Hanging In The Streets"

Tyler Durden's picture




 

In an extended interview with Bloomberg TV, Nouriel Roubini lives up to his doom-saying reputation and goes where few have as he opines on Lieborgate that: "bankers are greedy and have been for 1000 years" and "nothing is going to change" unless there are criminal sanctions; to which he follows up - briefly silencing the interviewer, "If some people end up in jail, maybe that will teach a lesson to somebody - or somebody will hang in the streets". The professor goes on to note that the EU "summit was a failure" since markets were expecting much more and warns that without full debt mutualization, debt monetization by the ECB, or a quadrupling of the EFSF/ESM 'bazooka'; Italian and Spanish spreads will continue to blow out day after day - leading to a crisis "not in six months but in two weeks". The only entity capable of stopping this is the ECB which needs to do outright unsterilized monetization in unlimited amounts which is 'politically incorrect' to talk about and claimed to be constitutionally illegal. 2013 will be a very difficult year to find shelter as policy-makers ability to kick-the-can runs out of steam as he sees the possibility of a 'Global Perfect Storm' of a euro-zone collapse, a US double-dip, a China & EM hard-landing, and a war in the Middle East. Dr. Doom is back.

Must watch 9 minutes of reality:

On Lieborgate:

Nothing has changed since the financial crisis. The incentives of the banks is to cheat - doing things that are either illegal or immoral. The only way to avoid that is to break up these financial supermarkets. There are no chinese walls and massive conflicts of interest.

On Greed:

Bankers are greedy - they have been for 1000 years.

On Sanctions:

There should be criminal sanctions. Noone has gone to jail since the global financial crisis. The banks do things that are illegal and at best they get a slapped with a fine. If some people end up in jail, maybe that will teach a lesson to somebody - or somebody will hang in the streets.

On TBTF banks:

There are more conflicts of interest today than four years ago. The banks that were too big to fail and now they are even bigger. Things are worse - not better.

On The EU Summit:

The summit was a failure. The markets were expecting much more.

Either you have debt mutualization (to reduce the spread), or you have debt monetization by the ECB, or the bazooka of the EFSF/ESM has to be quadrupled - otherwise the spreads on Italy and Spain are going to blow up day after day. Otherwise you will have another bigger crisis not in six months from now but in the next two weeks.

On The ECB saving the world:

The only entity capable of stopping this is the ECB which needs to do outright unsterilized monetization in unlimited amounts which is 'politically incorrect' to talk about and claimed to be constutionally illegal.

On Debt mutualization:

It is not just Germany that is resistant but other core nations including The Netherlands, Austria, and Finland. Finland doesn't even want to accept the recent indirect mutualization of the summit liabilities (of the EFSF/ESM).

On kicking the can:

By 2013, the ability of policy makers to kick the can down the road is going to run out of steam, and in the euro zone the slow motion train wreck will become a fast motion train wreck. The US seems close to stall-speed and an economic recession. The landing of China is becoming harder and EM nations (and BRICs) are sharply slowing down. And finally the potential for war between Israel, the US, and Iran - which will double oil prices overnight.

On 2013 being worse than 2008:

Worse because like 2008 you will have an economic and financial crisis but unlike 2008, you are running out of policy bullets. In 2008, you could cut rates; do QE1, QE2; you could do fiscal stimulus; you could backstop/ringfence/guarantee banks and everybody else. Today, more QEs are becoming less and less effective because the problems are of solvency not liquidity. Fiscal deficits are already so large and you cannot bail out the banks because 1) there is a political opposition to it; and 2) governments are near-insolvent - they cannot bailout themselves let alone their banks. The problem is that we are running out of policy rabbits to pull out of the hat!

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Sun, 07/08/2012 - 18:38 | 2597046 world_debt_slave
world_debt_slave's picture

Didn't Roubini say gold was a rubric relic and not money?

Sun, 07/08/2012 - 18:42 | 2597059 Surly Bear
Surly Bear's picture

One does not need to be a Nobel Prize winning economist to know we have issues. I swear, my mother, aged 75 years, knows more about economics than most.

Sun, 07/08/2012 - 19:20 | 2597151 Tippoo Sultan
Tippoo Sultan's picture

Where was this interview conducted ? The Temple of Amun-Re in Luxor ?

Sun, 07/08/2012 - 19:35 | 2597176 veyron
veyron's picture

Thanks to inflated costs of college education, I'd guess NYU ...

Sun, 07/08/2012 - 20:01 | 2597241 neptunium
neptunium's picture

The problem as far as I can see is that the intangibles (rehypothecation, derivatives, SPIVs) etcetera are obscuring what is clearly evident to everyone else, there existed, for a brief window after the Subprime situation the ability for central banks to see the core issues and address them, the can-kicking has enormously increased liabilites across the board, to use an analogy it is like dosing up on Ibuprofen to treat a malignant brain tumor, the core issues have yet to be addressed and the misdirected attempts thus far to "ease" the situation has merely increased the house of cards to the point that it is far more vulnerable to unexpected shocks, lack of prescience aside there are now at least 5-10 different scenarios that can cause major bank runs, currency crashes, hyperinflation and that's assuming that the data supplied by govt's and banks is not fudged, the true state of affairs in undoubtably far worse which is why I, for one, despite the pain it's going to cause, hope this chain reaction is unleashed sooner rather than later. 

The "swinging from lamp posts" comment is entirely valid given the effects this is going to have, for the first time in a generation it is no-longer paranoid to discuss contingencies at the personal level.

May you live in interesting times, as goes the proverb.

 

N

Sun, 07/08/2012 - 20:07 | 2597256 SRSrocco
SRSrocco's picture
U.S Gold Net Exports Increased Substantially During First Quarter 2012


http://www.financialsense.com/contributors/steve-angelo/u-s-gold-net-exports-increased-substantially-during-first-quarter-2012

This can only add to the BANKERS MISERY

Mon, 07/09/2012 - 08:01 | 2598231 tip e. canoe
tip e. canoe's picture

ah, who do you think is exporting the gold?

Sun, 07/08/2012 - 19:56 | 2597228 economics9698
economics9698's picture

Those “policy bullets” made the collapse longer and worse.  If we had taken our medicine without the “policy bullets” it would be over and the economy would be growing 5% to 7% today.

Sun, 07/08/2012 - 23:37 | 2597764 Bananamerican
Bananamerican's picture

Damn. we need more Policy Boolettes......12 gauge oughta do....

Mon, 07/09/2012 - 03:01 | 2598015 Axenolith
Axenolith's picture

Dude, you have to lose the idea that 5-7% growth is "normal" or desired.  5-7% growth only comes from an issuance of the monetary standard in excess of the creation of wealth or by profligate lending (unsupported by backing capital) at unnatural rates not reflecting risk.

A normal (and "sustainable for all the eco-warriors out there) rate of growth is between .5 and approximately 2.5%.  That rate reflects the creation of real wealth over time, and mirrors the accumulation of the units of value most constantly held to reflect wealth (gold and silver) AND the stable growth of human population.

You can trace all of humanities woes to the mis allocation of capital ensuing from unnatural money emission, from Rome, Tulip mania, "Continentals", a myriad of inflations in the 20th century, etc...  You cannot cure todays woes by a simple reset, you MUST bind the hands of the state and/or its influencers in their powers of money management to get a stabil, long term solution.

Sun, 07/08/2012 - 21:16 | 2597462 Oracle of Kypseli
Oracle of Kypseli's picture

@ Sultan

It looks like the hotel de ville in Aix-en-Provence, France Noth of Marseille. Most buildings are monumental looking there.

Sun, 07/08/2012 - 23:16 | 2597742 XitSam
XitSam's picture

I couldn't get it out of my head that it was in front of the Cairo Museum.

Mon, 07/09/2012 - 03:18 | 2598028 AnAnonymous
AnAnonymous's picture

Where was this interview conducted ? The Temple of Amun-Re in Luxor ?
_______________________

Ah, ah, good one. The decorum, the decorum. What US citizens lack in actual ideas, it is compensated by the decorum.

Mon, 07/09/2012 - 13:03 | 2598985 akak
akak's picture

Ah, ah, bad one.

The misdirection, the misdirection!

What Chinese citizenism trolls lack in actual ideas, they compensate for it in offuscation, obscuration, the throating of bigotry, and monolization of the speeching means.

Mon, 07/09/2012 - 13:06 | 2598997 AnAnonymous
AnAnonymous's picture

Yes, fully obvious.

The free press on a global scale is in the hand of Chinese. No one of them are US citizen chinese.

Truer than true.

Mon, 07/09/2012 - 13:15 | 2599040 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous hypocritically said:

The free press on a global scale is in the hand of Chinese. No one of them are US citizen chinese.

Much funny for you do saying, with your employment as Chinese citizenism talking mouth.

Truer than true.

In your fantasy world, your wording of an idea makes it the trueness.

Mon, 07/09/2012 - 13:21 | 2599061 AnAnonymous
AnAnonymous's picture

Ah, ah, US citizen economics at work.

So I am supposed to have created US citizenism and I am employed as Chinese citizenism talking mouth?

Very cogent.

US citizenism, the big destroyer of human thought process.

The seeds were planted on 1776,July, 4th and it took the required time to reach the current stage of devolution.

US citizens know no bottom, they can always dig deeper.

Mon, 07/09/2012 - 13:31 | 2599086 akak
akak's picture

Chinese Citizenism citizens show their bottoms, they can always make their roadside shitpiles deeper.

Chinese Citizenism citizens' hypocrisy and brutality know no bottom, they can always make the stacks of the skulls of their Tibetan genocide victims deeper.

Mon, 07/09/2012 - 13:31 | 2599096 AnAnonymous
AnAnonymous's picture

The stacks rise less high than US citizen stacks. They are involved in so many genocides, mass slaughters...

Mon, 07/09/2012 - 13:35 | 2599106 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous, US citizenism patriot, said:

The stacks rise less high than US citizen stacks. They are involved in so many genocides, mass slaughters...

As the founder and leader of US citizenism, you certainly bear a degree of personal responsibility. Which you will, of course, deny, as is your eternal nature.

Mon, 07/09/2012 - 13:39 | 2599124 AnAnonymous
AnAnonymous's picture

Ah, yes, now people killed by 'Americans' have to be a figment of my imagination.

US citizens can always dig deeper.

Mon, 07/09/2012 - 13:43 | 2599135 TheFourthStooge-ing
TheFourthStooge-ing's picture

More denialism, more impossibility of self indiction, more eternal nature of AnAnonymousity.

But hey, it's self justifying, which is why you love it.

Mon, 07/09/2012 - 13:51 | 2599160 akak
akak's picture

One has to love the side-splitting shitting-in-pantism that is the inevitable result of reading the hypocritical make-me-laughism of Chinese Citizenism, whose comedic nature is eternal.

Mon, 07/09/2012 - 13:59 | 2599191 AnAnonymous
AnAnonymous's picture

The sheer love of humanity as expressed by US citizens.

People killed by 'Americans' do not exist.

Mon, 07/09/2012 - 14:27 | 2599297 TheFourthStooge-ing
TheFourthStooge-ing's picture

The sheer love of humanity as expressed by US citizen AnAnonymous.

Tibetans killed by Chinese citizenism are not people.

Mon, 07/09/2012 - 14:40 | 2599358 AnAnonymous
AnAnonymous's picture

Are they not supposed to exist only in my imagination? Or are they granted a special status?

Mon, 07/09/2012 - 14:44 | 2599370 TheFourthStooge-ing
TheFourthStooge-ing's picture

In your imagination much is granted the firmly dangdang.

Mon, 07/09/2012 - 14:58 | 2599423 akak
akak's picture

In your warped and bigoted mind, reality is truly granted a special status, one which appears to be both frequently (if not uniformly) denied and in constant flux based on your bigoted whims of the moment.

Mon, 07/09/2012 - 13:32 | 2599099 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous, backpedaling furiously, said:

Ah, ah, US citizen economics at work.

So I am supposed to have created US citizenism and I am employed as Chinese citizenism talking mouth?

Of course. US citizenism is your fundamentally ill projection of Chinese citizenism onto a convenient exterior to avoid self indiction. They are equivalent; your denial proves the point.

Very cogent.

Ah, ah, very congruent.

US citizenism, the big destroyer of human thought process.

Indeed. Just look what it has done to yours.

Mon, 07/09/2012 - 13:37 | 2599115 AnAnonymous
AnAnonymous's picture

Wooo, and the buyers are?

Because as Chinese citizenism is a fantasy invented by US citizens who can not cope with the reality of 'Americanism', who would be interested in buying that kind of fantasy proclaimed as the equivalent of a reality?

Save US citizens...

Therefore I am to be employed by US citizens. That would be some sort of conspiracy theory, as liked by US citizens.

Mon, 07/09/2012 - 13:47 | 2599148 akak
akak's picture

The mathematical rigor of the logic (sic) of Chinese-EasterIsland-Greenlandic-Atlantean-US Citizenism is irrefutable and cannot be denied:

 

US Citizenism (sic) = Chinese Citizenism (projected to the exterior)

AnAnnoyingMouse = Chinese Citizenism

ergo, AnAnnoyingMouse = US Citizenism

US Citizenism = {null set}

AnAnnoyingMouse = {dull set}

Hypocrisy of Chinese Citizenism = 6.02 X 1023

Hypocrisy of AnAnnoyingMouse = infinity

 

Mon, 07/09/2012 - 14:17 | 2599248 AnAnonymous
AnAnonymous's picture

Absolutely.

You know, it is useless to try to make US citizens kicking the can on US citizenism looking worse than it is.

Uh, no, after. US citizen's knack at worsening the worst situations is well known.

Mon, 07/09/2012 - 14:32 | 2599317 TheFourthStooge-ing
TheFourthStooge-ing's picture

More AnAnonymous self indiction:

You know, it is useless to try to make US citizens kicking the can on US citizenism looking worse than it is.

...and yet, day after day, you do manage to make the US citizenism fantasy which afflicts you look worse.

Uh, no, after. US citizen's knack at worsening the worst situations is well known.

Well known to all except AnAnonymous, the primordial US citizenism citizen.

Mon, 07/09/2012 - 14:35 | 2599334 AnAnonymous
AnAnonymous's picture

Again with self indiction?

What step to dance? Self indiction? No self indiction?

Ah, consistency and coherence...

Mon, 07/09/2012 - 14:46 | 2599379 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Ah, consistency and coherence...

...the eternal lacking nature of AnAnonymousity.

Mon, 07/09/2012 - 14:35 | 2599332 akak
akak's picture

Absolutely.

You know, it is useless to try to make Chinese citizens' refusal to shit in the can, instead of on side of road, looking worse than it is.

Uh, no, after. Chinese citizen's knack at loosening bowels in public the worst situation is well known.

Mon, 07/09/2012 - 14:39 | 2599350 AnAnonymous
AnAnonymous's picture

But what is that? Chinese citizenism is supposed to be a fiction promulgated by the only one US citizen in the world, that is me.

US citizen eternal nature...

Mon, 07/09/2012 - 14:48 | 2599388 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

Chinese citizenism is supposed to be a fiction promulgated by the only one US citizen in the world, that is me.

US citizen eternal nature...

Ah, a glimmer of understanding.

It will soon fade.

Mon, 07/09/2012 - 14:51 | 2599403 AnAnonymous
AnAnonymous's picture

A glimmer of understanding?

Stating that Chinese citizenism is a fantasy?

Never thought of fill an application for a official position in a US citizen government?

You might have to up your game but you shall stand your chances here.

Maybe you could teach US citizen Hillary Clinton a few tricks...

Mon, 07/09/2012 - 15:00 | 2599434 akak
akak's picture

 

Ah, a glimmer of understanding.

It will soon fade.

Much like Szechuan firefly hotpot in broth of human fetus and bear penis --- oh! the goodness making lip-smacking dangdang!

Mon, 07/09/2012 - 13:54 | 2599168 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous, running around like a rat lost in a maze, said:

Wooo, and the buyers are?

Like you do not know. Your confusionated braining cannot see your right hand and left hand buying and selling between them. The patheticity of your willing blindness is a result of your impossibility for self indiction. Continue to deny, even though you know, as it is your eternal nature.

Because as Chinese citizenism

...which you project externally and call US citizenism...

is a fantasy invented by US citizens

...or actually just one US citizen, that being AnAnonymous...

who can not cope with the reality of 'Americanism'

...who cannot cope with the reality of Chinese citizenism, which his diseased mind calls Americanism...

, who would be interested in buying that kind of fantasy proclaimed as the equivalent of a reality?

Yes, please tell us.

Save US citizens...

...and that would be you.

Therefore I am to be employed by US citizens. That would be some sort of conspiracy theory, as liked by US citizens.

The fantasy is your creation. Call it what you wish, your eternal nature still shines through your offuscation.

Mon, 07/09/2012 - 13:58 | 2599185 AnAnonymous
AnAnonymous's picture

Another example of the destruction of thought process brought to you by US citizenism.

If Chinese citizenism is a fantasy invented by me, how can it be real?

And no, there is no connection between the current state of the world and the fact US citizens are ruling the world.

Gotta believe that.

Mon, 07/09/2012 - 14:11 | 2599224 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous, running in circles of insanitation, said:

Another example of the destruction of thought process brought to you by US citizenism.

Yes, you always are the best example of your ruined mental capacitance.

If Chinese citizenism is a fantasy invented by me, how can it be real?

I explaining for you again now making. US citizenism, your fantasy, is your illness of mentally projection to exterior of your very real Chinese citizenism, the Chinese citizenism you cannot accept due to the impossibility of self indiction.

Try reading to understanding again later when after you come downing from very much high opium intoxicality.

And no, there is no connection between the current state of the world and the fact US citizens are ruling the world.

Gotta believe that.

Yes, of course you do; it is your fantasy, after all.

 

Mon, 07/09/2012 - 14:15 | 2599242 AnAnonymous
AnAnonymous's picture

But you have nothing to explain. It is your own words
______________________________________________
Because as Chinese citizenism

...which you project externally and call US citizenism...

is a fantasy invented by US citizens

...or actually just one US citizen, that being AnAnonymous...
__________________________________________

You stated that Chinese citizenism is a fantasy invented by me.

Mon, 07/09/2012 - 14:38 | 2599345 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous, still trying and failing:

You stated that Chinese citizenism is a fantasy invented by me.

Yes, very good. Your disagreement now shows that Chinese citizenism is quite the real phenomenum.

Mon, 07/09/2012 - 14:42 | 2599365 AnAnonymous
AnAnonymous's picture

Impressive.

Is there a disagreement in:

you stated that Chinese Citizenism is a fantasy invented by me?

Mon, 07/09/2012 - 14:52 | 2599411 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Is there a disagreement in:

you stated that Chinese Citizenism is a fantasy invented by me?

Oh, are you going against your eternal nature and agreeing with me? That would be quite the something.

Mon, 07/09/2012 - 14:16 | 2599233 akak
akak's picture

 

If Chinese citizenism is a fantasy invented by me, how can it be real?

No, no, three times no!

It is US CITIZENISM which is your selfmade creation, not Chinese Citizenism! (which eveyone knows is alive and well and engaging in evil and greedy blobbing-upism throughout the world.)

It is YOU who are the founding father, the wellspring, the fountainhead, the seed, the very germ of US Citizenism!

US Citizenism = fantasy

Chinese Citizenism = reality

AnAnnoyingMouse = insanity

 

Mon, 07/09/2012 - 14:19 | 2599257 AnAnonymous
AnAnonymous's picture

It is not what is written.

US citizenism at work.

Mon, 07/09/2012 - 14:26 | 2599281 akak
akak's picture

It is not what is written, but it is most certainly something.

Something is the key, the crucial crusty bit, the offuscationalizingistic mettle of the thing.

Chinese Citizenism at work.

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