Roubini claims that LACK OF REGULATION caused current financial crises

Discussion in 'Economy' started by editec, Dec 25, 2008.

  1. editec
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    editec Mr. Forgot-it-All

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    Roubini claims that LACK OF REGULATION caused current financial crises

    FT.com / View from the Markets

    Who is this guy?

    The guy who a year ago predicted this meltdown....AKA DR. DOOM

    He called what we had "the SHADOW BANKING SYSTEM".

    Predicts that 1000's of hedge funds will fold in 2009.

    Expects to see emerging markets start collapsing.

    Sees POTENTIAL for a slow recovery post 2009 if the central banks don't blow it.
     
    Last edited: Dec 25, 2008
  2. Toro
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    Toro Diamond Member

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    Roubini is partly right.

    However, the primary cause of this mess is the Fed.
     
  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    And Peter Schiff says that it was government regulation that caused it, and he also predicted this crisis a few years ago.
     
  4. Epsilon Delta
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    Epsilon Delta Jedi Master

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  5. Modbert
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    Modbert Daydream Believer Supporting Member

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    The Federal Reserve was allowed no regulation in what they been doing for years and now have no regulation for this bailout.

    So lack of regulation everywhere was the main cause, but you are right that the Fed is a part of it at least.

    They currently refuse to tell the American people who are the recipients of $2 trillion dollars.
     
    Last edited: Dec 25, 2008
  6. mash107
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    mash107 Active Member

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    Yes, one of the best regulations is what we had until 1971. It's called the gold standard. It prevents the federal government from creating bubble economies, and inflation is never a factor.
     
  7. Modbert
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    Modbert Daydream Believer Supporting Member

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    Techincally yes.

    The gold standard has it's faults like any system would but it is leaps better then our current system.

    Our currency is only backed up by the confidence of the people in the economy and market at this point. No real currency backed up by anything could print $700 billion like it's monopoly money. Which is actually how much our money will be worth in 5 years if the markets continue to be unregulated because that $700 billion will be simply wasted with it's current unregulated process and they will only be back asking for more.
     
  8. Neubarth
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    Neubarth At the Ballpark July 30th

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    Do you honestly think that the countries that export to us would let the dollar inflate to the point that it has lost half of its buying power or more.

    They can not allow that because it would cause the collapse of their economy.

    Your projecdtion would be impossible to realize short of a total global economic collapse and a return to isolationism by the whole world.
     
  9. sparky
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    sparky VIP Member

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    not shadow, more an eyes wide shut global fiat system, with various players vieing for valuation. leaving the gold standard didn't mean we have a complete fairy tale system, there's always going to be a benchmark, it's simply a matter of WHO sets this that is relevant to the American economy

    imagine for a moment if one of the other players , one who may not exactly like us like Hugo Chavez, parlays a monetary consortium of enough trading partners to set their own valuation of US currency

    the US dollar could drop like a brick....
     
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  10. Modbert
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    Sparky makes the point I was going to make actually. Besides, the U.S. is no longer even the economic superpower that it once was.

    I don't know if you realize this but the U.S. dollar has lost a good amount of value and continues to.

    My projection isn't impossible as any student or follower of history could tell you that nothing is impossible.

    Besides, do you not see the fact we are at the edges of a total global economic collapse? It would not take too much more at this point to bring the world over the brink of economy collapse in which the world will return to a period of isolationism for at least 20-50 years if not longer for every country. All depends on how long it takes for that country's economy to recover.

    You also tend to forget the giant elephant in the room that few want to talk about; overpopulation.

    If you don't think wars with even people like your neighbor for things like water isn't in the near future at the rate we're going then continue to be a dream like world where reality does not matter.
     

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