General Discussion

marmar

(77,084 posts) Fri Jun 12, 2015, 10:54 PM Jun 2015

Nouriel Roubini: A market ‘time bomb’ is raising the risk of a dramatic collapse

Nouriel Roubini, one of the few prominent economists credited with predicting the 2008 financial crisis, thinks more trouble could be just around the corner.

Roubini’s latest piece over at Project Syndicate is a warning particularly about the low levels of market liquidity:

A paradox has emerged in the financial markets of the advanced economies since the 2008 global financial crisis. Unconventional monetary policies have created a massive overhang of liquidity. But a series of recent shocks suggests that macro liquidity has become linked with severe market illiquidity.

That’s a slightly wonkish way of saying not enough money is moving in markets at any one time. That means small changes in positions can have much bigger changes on asset prices — small corrections become big corrections, and big corrections can become crashes. .....................(more)

The complete piece is at: http://business.financialpost.com/business-insider/nouriel-roubini-a-market-time-bomb-is-raising-the-risk-of-a-dramatic-collapse

9 replies

= new reply since forum marked as read

Highlight:

Nouriel Roubini: A market ‘time bomb’ is raising the risk of a dramatic collapse (Original Post) marmar Jun 2015 OP

The market is a chaotic system starroute Jun 2015 #1

Buy gold? Fumesucker Jun 2015 #2

No, friend: Platinum may be better! sadoldgirl Jun 2015 #4

I'm gonna corner the market... Fairgo Jun 2015 #9

This message was self-deleted by its author 1000words Jun 2015 #3

Sure. The month before the election there'll be a crash and Congress will have to give valerief Jun 2015 #5

And we'll be told we need a good money managing RepubliCON, SoapBox Jun 2015 #6

Wait...you mean giving all the money to the top 0.01% is bad???? Moostache Jun 2015 #7

Hold up, first our ecosystems are collapsing around us. raouldukelives Jun 2015 #8

starroute

(12,977 posts)

1. The market is a chaotic system

Reply to marmar (Original post)

Fri Jun 12, 2015, 11:54 PM

Jun 2015

But the idiots think they can control it.

Fumesucker

(45,851 posts)

2. Buy gold?

Reply to marmar (Original post)

Sat Jun 13, 2015, 12:03 AM

Jun 2015

sadoldgirl

(3,431 posts)

4. No, friend: Platinum may be better!

Reply to Fumesucker (Reply #2)

Sat Jun 13, 2015, 12:19 AM

Jun 2015

Not that most of us could afford any such investment.

Perhaps, though, if one can, it might be best to go for
the military products, which seem to get hotter and
hotter now.

Too bad for me, that I cannot afford either, however
I am sure some people will.

Fairgo

(1,571 posts)

9. I'm gonna corner the market...

Reply to sadoldgirl (Reply #4)

Sat Jun 13, 2015, 09:14 PM

Jun 2015

In Unobtainium. Garunteed to appreciate in value! Plus, I hedge my bets in tulip futures.

Response to marmar (Original post)

1000words This message was self-deleted by its author.

valerief

(53,235 posts)

5. Sure. The month before the election there'll be a crash and Congress will have to give

Reply to marmar (Original post)

Sat Jun 13, 2015, 01:20 AM

Jun 2015

a trillion dollars to banks and whatnot to SAVE the country. Same show, different season.

SoapBox

(18,791 posts)

6. And we'll be told we need a good money managing RepubliCON,

Reply to valerief (Reply #5)

Sat Jun 13, 2015, 01:37 AM

Jun 2015

like Jebbie, to lead us through the financial darkness.

Moostache

(9,895 posts)

7. Wait...you mean giving all the money to the top 0.01% is bad????

Reply to marmar (Original post)

Sat Jun 13, 2015, 01:44 AM

Jun 2015

CLUTCH THE PEARLS AND HOPE I DON'T SWOON!!!

I remember back in '07/'08 hearing "the fundamentals of the economy are strong" and I knew inherently THEN that wealth concentration was strangling the overall economy because too many people had squat and too few people were getting obscenely rich.

Nothing has changed in that area. Only gotten worse...

raouldukelives

(5,178 posts)

8. Hold up, first our ecosystems are collapsing around us.

Reply to marmar (Original post)

Sat Jun 13, 2015, 09:49 AM

Jun 2015

And now our money might buy less of the nothing that is left? Yikes!

Reply to this discussion