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Tuesday, August 21, 2012

Nouriel : We learned the lessons of the Great Depression

Nouriel Roubini : Yes, the Federal Reserve can help and so far it has helped. The fact that the Great Recession of '08/'13 did not turn into another Great Depression is due to the fact that we learned the lessons of the Great Depression. And it means that in the short term we need more fiscal stimulus. The reality however is that we're running out of policy bullets. Politically, we're not going to be able to bailout the banks and the bankers for a second time. I think there will be a political backlash against it.
So if things are to turn sour compared to '08, when we had all the policy bullets, this time around would be worse. - in NPR

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