“Dr. Doom foresees agony in our future,” says the banner headline of Metro, a street newspaper in the Big Apple, the world’s biggest metropolis. Metro, New York, (10/29,08, Arden, P) He believes the NYC recession will stay for more than two years.
In the financial circles, Dr. Doom is reaping vindication after he was tagged as an alarmist for his bleak predictions on the economy long before it happened. The NYU economics professor travels more frequently outside USA now, sharing to the world his Nostradamus-like prescient cataclysmic read of the financial future.
Dr. Doom whose real name is Nouriel Roubini has a lot to say about the financial downturn whose solution has moved into uncharted territory. In spite of the $700 billion bailout, persistent market volatility exists which shows no indication of abating.
“Every time there has been a severe crisis in the last six months, people have said this is the catastrophic event that signals the bottom. They said it after Bear Stearns, after Fannie and Freddie, after AIG [the giant US insurer that had to be rescued], and after the $700 billion bailout plan. Each time they have called the bottom, and the bottom has not been reached.
Across the world, governments have taken more and more aggressive actions to stop the panic. However, Roubini believes investors appear to have lost confidence in governments’ ability to sort out the mess.” TimesOnline (10/26/08, Rushe, D)
Roubini’s dire look into the future is unlike the optimism and promises of the politicians in the soon-to-be concluded US presidential election in which hope is matched with fear. It brings recall former House Speaker Newt Gingrich who expresses trust in the American people for their extraordinary patience, industry and resiliency. But,—they need to make the right choices.
In his recent book on “Real Change” published months before the economy collapsed, Gingrich mentioned a serious problem.
“The problem is with the politicians, our news media, and our bureaucratic elites. They are afraid to tell the American people the truth. They are afraid to explain the scale of the threat and the inevitable scale of the needed response.”—Real Change: From the world that fails to the world that works.” (Regnery Publishing, Washington DC, 2008, Gingrich, N., p.298) (Photo Credits: outragousart; nicoridge)=0=