Economic geeks should watch it all. It’s the most cogent analysis I’ve heard of the current U.S. and global economic situation.

Just keep in mind that Roubini is a perma-bear and he was much too pessimistic in the spring and early summer of 2009. Nevertheless, he has been right about a lot of things too.

Talking Points

  • U.S. Financial Regulatory Reform bill is, “… too little, too late. It’s going in the right direction but it doesn’t do enough in order to prevent the next financial crisis.”
  • “The ‘too big to fail problem’ has not been resolved. The idea that you’re going to have an insolvency regime, you’re going to shut them down, is not going to work in my view. If they are too big to fail, they are just too big.
  • The monetary policy of near-zero interest rates doesn’t work well to spur economic growth when everyone is trying to de-lever, trying to reduce their debt.

This particular video is one of Roubini’s best, probably because the questioner is “The Economist.” They’re asking all the right questions.