tag:blogger.com,1999:blog-1527766217650773141.post7209808596027314480..comments2023-07-12T06:12:30.772-07:00Comments on Demand Side Transcript: Nouriel Roubini points at private debt as the millstone carrying the economy downAlanhttp://www.blogger.com/profile/07323700324276425194noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1527766217650773141.post-61652761892687941922010-04-15T22:08:49.765-07:002010-04-15T22:08:49.765-07:00This comment has been removed by a blog administrator.debt negotiation settlementhttp://www.debtzerocentral.comnoreply@blogger.comtag:blogger.com,1999:blog-1527766217650773141.post-54744196071929614022010-03-27T07:07:35.150-07:002010-03-27T07:07:35.150-07:00Great! looking forward to hearing from you on the ...Great! looking forward to hearing from you on the 4th!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527766217650773141.post-2695657339715271962010-03-26T10:17:40.923-07:002010-03-26T10:17:40.923-07:00The first and last paragraphs of Roubini's pos...The first and last paragraphs of Roubini's post are right on. In the middle there is a lot of concern about financial casinos and too little concern about investment.<br /><br />We will open the podcast on April 4 with commentary on thisAlanhttps://www.blogger.com/profile/07323700324276425194noreply@blogger.comtag:blogger.com,1999:blog-1527766217650773141.post-4656657909813725912010-03-25T05:21:29.708-07:002010-03-25T05:21:29.708-07:00Any news on the podcast?Any news on the podcast?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527766217650773141.post-89186015601705626922010-03-25T01:22:56.835-07:002010-03-25T01:22:56.835-07:00Nouriel Roubini is right that as individuals try t...Nouriel Roubini is right that as individuals try to clear their debts they exacerbate the paradox of thrift. It still has to happen. This is when stimulus should be applied to offset the savings, and to maintain stability. As for some claiming that it is crowding out private borrowing. That is clearly not happening. They would not be borrowing anyway. They are already in too much debt, and with uncertain times why borrow? The automatic stabilisers of unemployment benefit would help the country get to the new norm as quickly as possible. Then when asset prices have reached a new stable level then stimulus to get people back to work may have been better. <br /><br />Though some western governments only have themselves to blame for poor policy in the past for not encouraging savings, or mis-calculating actual savings rates, or even at least attempting to maintain savings levels. Add in a reliance on bubbles to create the illusion of growth and prosperity, and you have a perfect storm for governments to deal with. I still see a number of crises that will further destabilise money markets, and may cripple governments. <br /><br />I am coming to the conclusion that the stimulus came too soon. It only supported the asset values till banks could claim to be solvent again. It just delayed the price adjustment till a later date. US property is now looking 10% overvalued still. With the UK more than 30% overvalued these look vulnerable, and could damage banks further. Falling real estate values take time to find a floor. The intervention has slowed this process, and only creates a false floor for markets to build on. As this floor crumbles it will deter any further investment until a more secure floor to asset prices is found. <br /><br />Now the deficit hawks are now circling around governments. The price support for many assets will whither as governments come under assault from those wishing to cut deficits. This could still crush the banks who were apparently saved. Though now with government guarantees this will destroy government finances as the credit default markets siphon off trillions of dollars.David Lazarusnoreply@blogger.com