Monday, October 18, 2010

Roubini : the stock market is going to correct

Nouriel Roubini : .....the stock market is going to correct, credit spends are going to widen, there will be a negative world effect on consumption investment, the cost of capital is going to rise and then you have another shock to the real economy that went in a vicious circle in which you can go off the cliff. That is what we are facing right now, the banks are sitting on a trillion dollar of excessive reserves, they are not lending it whether it is credit supply or demand.

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