Saturday, August 6, 2011

Nouriel Roubini Discusses the US Downgrade

Roubini, Rosner, Bianco and Romer Discuss US Downgrade .
Nouriel Roubini : they went ahead now for a number of reasons first of all they downgraded a bunch of European countries , and the Europeans were bashing the rating agencies 'why are you downgrading us and not downgrading the United States' , then they cornered themselves at the time of the debt ceiling debate by saying that unless there is a 4 trillion deficit reduction we are going to downgrade you while the other are saying may be not and at this point giving the market volatility in the last couple of days they can downgrade now and if there is going to be turmoil in the markets Monday they could say , Hey it is not our fault , it is may be because there is market volatility the reality is they contributed to the crisis that cause them leading to the downgrade , there is no fundamental reason at this point compared to few months ago for a downgrade the thing that has changed may be right now , there is a great risk of double dip recession and that's may be the only fundamental difference ....

Nouriel Roubini, chairman of Roubini Global Economics LLC, Joshua Rosner, managing director of Graham Fisher & Co. and Jim Bianco, president of Bianco Research LLC talk with Bloomberg's Michael McKee about Standard & Poor's downgrade of the U.S. credit rating to AA+ from AAA. Bloomberg contributor Christina Romer also speaks with Adam Johnson (Source: Bloomberg)

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