Roubini and Taleb on Nationalizing Banks


Anyone that throws cash at a franchise now (starts, renews), has lost their mind.

  • Please note: No one invests in a franchise. You simply rent an alleged proven system and a trademark for some period of time.
  • You may think you own something of value but that is a type of sleep-walking that you will awaken from.
  • How long will you continue to feed a corpse (ie. continue to make payments into an already collapsing fraud)?

Nouriel Roubini and Nassim Taleb know what they’re talking about, notwithstanding the pettiness of people like Paul Krugman. I did study political economy and using communism as a straw dog argument is unbecoming  anyone that calls themselves a professional economist.

  • Unless, of course, bringing Monty Python in was Herr Krugman’s idea of a joke.
  • That may be a sense of humour not shared by the +500,000 U.S. laid off workers last month.

Nationalize banks (guaranteeing bad debts and a  “bad bank” won’t work).

  1. Don’t reward known thieves and reckless risk-takers.
  2. Cash is King (keep what you’ve got).
  3. Compensation IS the source of the problem.
  4. It’s only started (massive deleveraging still to happen).
  5. The recession could be 10 years long.
  6. Obama’s bailout plan is a BUST.

And don’t listen to the media morons.

One Response to Roubini and Taleb on Nationalizing Banks

  1. Carol Cross says:

    Interesting and frightening –and ultimately, maybe the banks will have to be nationalized, if the President’s stimulus package doesn’t work, at least, to stop the rising unemployment. Dr. Doom may be right! The only solution is “deleveraging” and completely changing the current system, and there is NO way to stop the PAIN.

    When the House of Cards falls, maybe there is no viable plan to stop the fall. The American people know that President Obama will work in their interests but they know that he can’t work “magic” and he has to ultimately rely on the advice of the economists and financial specialists who advise him. He has to try to get a consensus from the Congress to move swiftly.

    But when the Big Bus of leveraged debt loses its brakes and rolls down hill, picking up speed as it goes, those in the path of the bus can’t move fast enough to save themselves.

    But, in my view, President Obama has no choice but to TRY to save the financial system. The repercussions of allowing banks and trillions in assets to fail would impact innocents because private pension plans and the pension funds of teachers and public workers, etc.. and charities who are invested in securities and bonds would fail and join the unemployed.

    It is all so complicated. The accounting laws and the tax laws and the regulatory rules have all been formulated to accommodate securitization of receivables into an “unknown” future and when the BIG BLACK SWANS started to swim in the economy, there was no way to mark the value of these investments to the current markets. Apparently, when these markets froze up, the bubble finally burst, and there is NO market for some of these securities, and their value is unknown .

    Looking in from the outside, it looks like securitization and accounting and tax laws are the subject of recent adjustments by those in the Congress who are responsible for promulgating rules and regulations that accommodate the “securitization” industry. Let’s hope that there is expertise in the Congress or available to the Congress that will permit them to do the right thing for the American people and not just for the fat cats who survive in the “Bonus” world described by Dr. Doom.


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