News, Hundreds of banks will fail, Roubini tells Barron's. (insurance, interest, tax)

[John1960]

NEW YORK, Aug 3 (Reuters) - The United States is in the second inning of a recession that will last for at least 18 months and help kill off hundreds of banks, influential economist and New York University Professor Nouriel Roubini told Barron's in Sunday's edition.

Taxpayers will pay a big price for helping bail out the rest of the financial services industry as well, Roubini said -- at least $1 trillion and more likely $2 trillion.

Hundreds of banks will fail, Roubini tells Barron's | Reuters

[baystater]

http://www.city-data.com/forum/busin...ni-speaks.html

We've already covered this john. but thanks for the article.

[GregW]

Where does the learned professor propose that the taxpayers will get the trillions? Why does he think we should bail out the financial sectors at all? Financial markets are regulated by risk and the risk must be real. After the “free” money party comes the system collapse hangover. It is now hangover time.

Depositors in small bank accounts should be protected because they accepted lower interest rates in return for the federal deposit insurance. Anyone investing in the uninsured part of the system should be at risk.

[Wild Style]

Originally Posted by GregW

Where does the learned professor propose that the taxpayers will get the trillions? Why does he think we should bail out the financial sectors at all? Financial markets are regulated by risk and the risk must be real. After the “free” money party comes the system collapse hangover. It is now hangover time.

Depositors in small bank accounts should be protected because they accepted lower interest rates in return for the federal deposit insurance. Anyone investing in the uninsured part of the system should be at risk.

GregW I am very disappointed in you today. You are one of my favorite posters but come on. Go read the link that baystarter posted. It is a link to a thread I made. In it you will find Roubini's full comments. He never promoted the tax payer bailing out banks. In fact, he says its socialism for the elite and he is against it. Not saying that he is againt socialism, he is saying banks dont share profits with us when times are good yet the government shares losses with us, the tax payer when things are bad. Its utter crap to say the least! Anyway, be the GregW I have come to respect and read the full article man, you will enjoy it!

[HappyTexan]

I was reading about bailouts and the taxpayer in some article and it was phrased something like this:

privatization of profits but socialization of losses