World financial crisis 'not over'

[Cees Binkhorst]

REPLY TO: D66 at nic.surfnet.nl

Net de uitzending over Lehman gemist, maar ik kan het wel zien op
'Uitzending gemist'  of wachten op de volgende.
Volgens Roubini komt er nog meer, en volgens de cijfers die ik zie kan hij
wel eens gelijk krijgen.

Het vervelende met bankiers is dat ze nooit over een crisis willen praten,
want dan vraag je er immers om.
Maar intussen betalen ze zichzelf wel forse bonussen, want ze maken toch
winst ;)

Terwijl ze gezamenlijk nog $1400 miljard moeten inlopen van de vorige crisis.
Maar zolang dat niet blijkt uit hun balansen doen ze niets en leven ze in
hun eigen fantasiewereld.

Groet / Cees


 World financial crisis 'not over'

By Michelle Fleury
Business reporter, BBC News, New York

The US economist widely credited with having predicted the financial
crisis has warned we are already "planting the seeds of the next crisis".

Nouriel Roubini told the BBC that he is concerned about the growing gap
between the "bubbly and frothy" stock markets and the real economy.

Over the last six months, the Dow Jones Industrial Average has risen about
45%.

But Mr Roubini says he sees an economy where consumers are "shopped out"
and "debt burdened".

'Crisis not over'

Based on the run up in share prices in recent months, investors appear to
be betting that good times are around the corner. A view not shared by Mr
Roubini.

"The crisis is not yet over," the New York University professor said.
“ I think that there is a growing gap between what is the asset prices and
the real economy ”
Nouriel Roubini

"I see an economy where the consumers are shopped out, debt burdened, they
have to cut back consumption and save more.

"The financial system is damaged... and for the corporate sector I don't
see a lot of capital spending because there is a glut of capacity."

Mr Roubini believes US house prices have further to fall, straining
America's fragile recovery.

'Frothy markets'

Property prices have already declined sharply. According to the National
Association of Realtors, the national median has dropped almost 13% from a
year ago to $177,700 (£110,100).

Many believe the crises in the residential market could spread to the
commercial real estate market causing more headaches for the banks.

So where does the "froth" in the markets come from?

Mr Roubini - like many other economists - believes it is engineered by the
Federal Reserve and the government which has been pumping cash into the
economy to dampen the pain of the recession.

"There is a wall of liquidity chasing assets," he said. "But I think that
there is a growing gap between what is the asset prices and the real
economy."

Although he thinks there will be a correction, he believes some of the
mistakes of the past can be avoided if reforms are implemented .
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8298182.stm

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