Wall Street’s Doctor Doom
Posted by Martin Poulter on 10 October 2008
The current financial crisis has made a previously obscure academic essential reading. Business-cycles expert Nouriel Roubini of New York University has been predicting the current disaster since 2006. In February 2008, he wrote an article titled “The Rising Risk of a Systemic Financial Meltdown: The Twelve Steps to Financial Disaster”. So far we’ve been through most of what he predicted, step by step. Updates have continued on his site RGE Monitor, which is a subscription site although free access is currently possible. As of the latest bulletin he is predicting a full-on crash and recession: “The US and advanced economies’ financial system is now headed towards a near-term systemic financial meltdown”. Meanwhile, the Guardian article about Iceland, “the island that tried to buy the world” shows what happens when a whole country lives on credit which suddenly dries up.
To cheer you up a bit, the B3ta boards weigh in on our financial woe.