Tuesday, March 16, 2010

Nouriel Roubini : Risks of runaway fiscal deficit and monetization

Wall Street's Fear Gauge - Nouriel Roubini on CNBC 16 Mar. 2010

Nouriel Roubini Chairman of RGE Roubini Global Economics " there is a significant amount of uncertainty about the exit strategy and in my view damn if you do damn if you don't " says Nouriel Roubini " If you exit too soon from the stimulus you end up back into recession deflation if you wait too long and you have run away fiscal deficits and you keep on monetizing them eventually there will be credit risk or high inflation and that's gonna also armed recovery , so the path of exit is going to be very very difficult , and there will be a risk of major policy mistake in election year in the United States or in the UK or in other countries"
The VIX is trading at the bottom of its two-year range, a possible signal that fear is leaving the market. Paul Britton, of the Capstone Holdings Group, and Nouriel Roubini, of Roubini Global Economics, share their insight.

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