DISQUS

AMERICAblog: Roubini sees another stock drop, large bank failure

  • pdxprobert · 8 months ago
    Just what kind of recovery do people think is possible when the last 5 years has been an excercise by the American public on how to live on falsely created wealth.. in the form of unreal equity on your homes and credit cards issued with an expectation of payment around 3% or less of the balance... now that people don't have those options, what kind of recovery is going to occur when people are buying what they can afford over what they could have at any price? And besides that, who doesnt have 3 or more of everything.. hell, Im tired of stuff and have been putting it out for free at the end of my driveway... 99% of it goes the first 3 hours.. and faster if its sunny... As a world economy, we overproduced at least for the consumer in the USA.... just what will a recovery look like if it does happen? Im with Roubini, there's still more to fall.. any gains we see will be manioulation.. the hedge funds still have lots of pull and can create false momentum and take it away just as fast... until the uptick rule is put back in place and the sales of naked shares both long and shorted is considered fraud, the market will not recover....
  • lucky hussein · 8 months ago
    imo, you'll know Obama is starting to figure things out when they get rid of the uptick rule. what a joke...
  • pdxprobert · 8 months ago
    What do you mean?.. they already got rid of the uptick rule several years back...
  • lucky hussein · 8 months ago
    oops, I meant bring it back, sorry..
  • Jay Randal · 8 months ago
    Unfortunately Obama will keep shoveling multi-billions to the banksters no matter what happens. Hoover did the same thing untill most of the banks failed.
  • Harry Pothead · 8 months ago
    Where can I read about this? I'm not too familiar with this part of US history and would like to know more. thanks.
  • Tom · 8 months ago
    Don't you see the stage being set for this eventuality?

    We can guess but don't yet know which banks are insolvent. Isn't this what the stress tests are all about? Or is that just a cover, some sort of bandaid?

    And, does the US government have the legal authority to take control of an AIG or Citibank? Tim Geithner asked for that authority this week.

    Like everyone else, I would like for the nightmare to be over already. But, it seems to me that the hand is being played, the pieces necessary to deal with the crises are being put into place.
  • tbhull · 8 months ago
    Any guesses as to the big banks Roubini thinks will fail?
  • lucky hussein · 8 months ago
    well there's not that many, BofA, JPMorganChase, Wells, Citi. My guess is Citi and BofA

    The fix is in for bank reporting next month, imo. Not suprised if we get a stock rally then. The 'stress tests' are getting post-poned, watered-down maybe, but I don't think will be held back forever. and it looks like mark-to-market accounting will come in later this year.

    imo, we should just support the bogus mortgages themselves until we can de-leverage this house of cards bit by bit. but, under that scenario, the market crashes, bank stockholders get nailed, and no fun for hedge funds. oh well, imo, let it happen...since I think it will eventually.
  • devis1 · 8 months ago
    Citi wasn't in on any of the fire sales (e.g. Bears, Merrill)--don't know if that was prudence on their part, no $ and about to go under or they were being screwed by the other players.

    I'm starting to see commercials for GMAC bank CD's on the teevee. Didn't they just apply for bank status? Weird times.
  • shano · 8 months ago
    GE s financial branch may be insolvent, too. It could take down the company-but no one knows because they do not have m2m. No transparency and the shareholders do not believe management either.
  • AngelaChanning · 8 months ago
    It is possible the market will take another drop but then again it is possible it won't. Who would have thought that we had a positive three weeks? According to some doomsters, we should have been in the abyss by now. Frankly, I am getting sick of Dr. Doom, Cramer, and all of this merry band. I finally had the nerve to check my 401k balance and it was not as bad as I thought. LOL. Thank you for listening.
  • Indigo · 8 months ago
    The market always goes down and then up and then down and then up and then down again and so on and the sun will set before it rises, then the sun will rise before it sets. So what? Nostradamus-Roubini needs new material.
  • lucky hussein · 8 months ago
    OT technical note: I used to click the americablog banner to return to the main page, now it opens a new window, me no like ;)
  • Sensible · 8 months ago
    Roubini's ego is getting too big for his hat...
    markets always rebound before the fundamentals...
    and we're seeing good signs in housing, bank lending, etc.
    We might see another down blip, but we have probably seen the bottom. Some stocks are trading at fractions of their value.
  • larry · 8 months ago
    How interesting how you have cherry picked from Roubinis latest comments regarding the Obamas actions in the financial markets and banks to suit your ongoing anti Gietner diatribe. Why not be a little more honest in your posting Chris. It would be a welcome change......
  • maudgonne · 8 months ago
    President Luiz Inacio Lula Da Silva, said the financial crisis was caused by "white people with blue eyes". He told a joint press conference with Mr Brown that he had never met a black banker. "This is a crisis that was caused by people, white with blue eyes. And before the crisis they looked as if they knew everything about economics," he said. "Once again the great part of the poor in the world that were still not yet [getting] their share of development that was caused by globalisation, they were the first ones to suffer.

    "Since I am not acquainted with any black bankers, I can only say that this part of humanity that is the major victim of the world crisis, these people should pay for the crisis? I cannot accept that. If the G20 becomes a meeting just to set another meeting, we'll be discredited and the crisis can deepen."
    http://www.independent.co.uk/news/world/politic...
  • maudgonne · 8 months ago
    http://www.canada.com/business/fp/story.html?id...
    More big banks will go 'belly up,' economic guru warns
    Investors 'way too optimistic'
    By Michael Patterson and Maithreyi Seetharaman,
    Bloomberg March 26, 2009

    U.S. stocks will fall and the government will nationalize more banks as the economy contracts through the end of 2009, said Nouriel Roubini,
  • Asterix · 8 months ago
    Someone please explain to me how any of this business of government-funded recovery plans is going to make any difference when the fundamentals haven't changed.

    We exchange private debt for public, but the public debt must be paid somehow. Wages are remaining depressed; there's no credit to be extended because the middle class is borrowed out.

    Where's the fundamental change--the thing that's going to get people back to work doing something other than shuffling paper around or flipping burgers? What is it that the US will be able to sell the world?
  • bob_h · 8 months ago
    It is always useful to recall J.K. Galbraith's definition of an economist as someone who forecasts because he is asked to.

    Markets usually turn up about six months in advance of a turnaround, and that says October, which is about right.

    One of the best things about the end of this crisis will be not having to listen to the ubiquitous Roubini anymore.