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Roubini on the economy
Short-Term Trading —
FT "In many countries the banks may be too-big-to-fail but also too- big-to-save, as the fiscal/financial resources of the sovereign may not be large enough to rescue such large insolvencies in the financial system". Pretty scary especially if a crisis develop in weaker countries where governments have less margin of intervention. Can we see such a situation in Europe? Roubini adds: "But now such sovereign risk – as measured by the sovereign spread - is also rising in many European economies whose banks may be larger than the ability of the sovereign to rescue ...
Features of the week
Finance Trends Matter —
... value for the S&P 500 = 440. See also: Why fair value for the S&P 500 is not 440. 6. Stop listening to Suze Orman (caution: photo included). 7. Stimulus: because all economies have performance issues. 8. Gary Tanashian on Geithner's "comprehensive" attack. 9. FT Markets Q&A: Nouriel Roubini on prospects for 2009. 10. Interview: ...
Credit Bubble Hangover
The Big Picture —
... According to RGE (Nouriel Roubini) many US banks are insolvent: overall banking capital before the crisis was $1.4 trillion but there are expected losses of $1.8 trillion. Losses from loans and securities generated by US financial institutions are estimated to have been $3.6 trillion at its peak. ...
