Monday, July 2, 2012
Roubini : More Monetary Easing Everywhere
Nouriel Roubini : "Everyone is going to do more monetary easing...We live in a world in which the problems of the advanced economies are not problems of liquidity. Banks have plenty of liquidity. The problems are fundamental solvency. So just throwing money at it implies that the loss will continue to collapse and banks will hold extra money in the form of excess reserves. The credit mechanism is broken and there is no creation of growth in most advanced economies. So it doesn't affect real economic activity."