'The world's advanced economies are headed for a second recession, regardless of whether there is further chaos in Europe, The question is not whether or if there is going to be a double dip, but whether it's going to be mild or severe with another financial crisis,". "The answer on that depends on the euro zone." "You need an EFSF that is four times as large as the 440 (billion euros) to make sure that a bad equilibrium, and a self-fulfilling run on Italy and Spain doesn't occur," "There's no plan for that, because politically even the first EFSF has not yet been approved, let alone to triple it or quadruple it." Famed economist Nouriel Roubini chairman of RGB Roubini Global Economics,told CNBC on Tuesday on the sidelines of the World Knowledge Forum in Seoul' http://nourielroubini.blogspot.com/2011/10/roubini-double-dip-recession-will.html
So Dr. Doom - who quite accurately predicted the last recession - has predicted another one. 'In September 2006, he foresaw the end of the real estate bubble: "When supply increases, prices fall: thats been the trend for 110 years, since 1890. But since 1997, real home prices have increased by about 90 percent. There is no economic fundamentalreal income, migration, interest rates, demographicsthat can explain this. It means there was a speculative bubble. And now that bubble is bursting." In the Spring 2006 issue of International Finance, he wrote an article titled "Why Central Banks Should Burst Bubbles"[10] in which he argued that central banks should take action against asset bubbles. When asked whether the real estate ride was over, he said, "Not only is it over, its going to be a nasty fall."' http://en.wikipedia.org/wiki/Nouriel_Roubini#U.S._economy
And this from a non-Austrian Schooler (though I used to assume he was one). 'Another intellectual hero is Larry Summers, the former President of Harvard, an amazing intellectual and academic, who is very deeply involved with the policy world. I worked for him for many years in the US Treasury during the Clinton Administration".' http://en.wikipedia.org/wiki/Nouriel_Roubini#Role_models Larry Summers?!?
Debt crisis in the euro area, overshadowed discussions on the restructuring of global monetary system based on the dollar, despite calls to China, more effort should be made in reforming the system. SDRs are designed to reduce international liquidity by supplementing the standard reserve currency, but a sustainable crisis monetary system must rely on a set of currencies than just the dollar as it is now. http://guidebg-sofiabg.blogspot.com/2011/11/what-could-not-happen-at-summit-of-g20.html
