Image by Getty Images via Daylife Major financial institutions, like Bear Stearns and AIG are demostrating their enormous potential impact on the US and even global economies. However, there is little or no coordinated supervision or insolvency path should they begin to fail. US Treasury Secretary Timothy Geithner begin revealing his plan for a "new era of regulation." Meanwhile, Roubini takes his shot at crafting a response and framework for what he thinks would be most effective: Blueprint for … [Read more...]
Roubini Looks at Insolvency Regime for Non-Banks and Holding Companies
March 27, 2009 By Leave a Comment
Are We in an Economy Where Low Mortgage Rates Don't Matter?
March 27, 2009 By 1 Comment
Image via Wikipedia 24/7 Wall Street presents and interesting angle on the role of mortgage rates in recovering the housing market. Are we in an economy where factors and anxiety around unemployment and investment make it such that mortgage rates are too much at any cost? While some data shows that housing may be finding a bottom, it is likely that very few people are willing to gamble their own money that the perception is true. If unemployment rises, housing prices could continue to fall. If foreclosures … [Read more...]
Roubini Still Predicting Rough Road Ahead for Stock Market and Banks
March 26, 2009 By Leave a Comment
Image by Getty Images via Daylife Roubini, professor at NYU’s Stern School of Business and the chairman of consulting firm Roubini Global Economics, tells Bloomberg that banks are not out of the woods yet. The infamous doomsdayer of the impending mortgage crisis in 2004, is cautioning investors and economist on reveilling in the euphoria of optimist stock market rallys. Roubini cautions economic recovery heralds as he predicts more major bank failures and nationalization ahead. I am certainly … [Read more...]
GM Bankruptcy-Good for the Economy, but Bad for Management?
March 2, 2009 By Leave a Comment
Image via Wikipedia An interesting opinion piece in the Wall Street Journal, penned by Harvard Law School professor Mark J. Roe, argues that putting GM into Chapter 11 bankruptcy may not be as scary as GM management might want you to think: General Motors Corp. is back in Washington, this time asking for $12 billion to add to the $18 billion loan the government approved last year. The possibility of bankruptcy for GM is very real -- the company posted a loss of $30 billion in fiscal 2008. GM … [Read more...]
