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Tuesday, October 28, 2008

Dr Doom Gives Advice on the Economy

NYU Economist and former Clinton administration Council on Economic Advisors member Nouriel Roubini has been uncannily correct about the global financial meltdown, earning him the nickname "Dr. Doom."

Late yesterday, speaking at a Bloomberg Media forum in New York City, Roubini called for an immediate $400-$500 billion U.S. economic stimulus package focused upon projects to improve our country's infrastructure: "U.S. Should Enact $400 Billion Stimulus, Roubini Says."

Some excerpts from the Bloomberg story ...
Oct. 27 (Bloomberg) --
"The only way to increase aggregate demand is going to be through" government spending on roads, bridges and other infrastructure, Roubini said at a Bloomberg conference in New York. "We need a huge plan, $300 billion is not going to be enough. I think we're going to need a plan of $400 billion to $500 billion."
"If we don't do that fiscal stimulus today, three months from now, six months from now the collapse of the real economy is going to be so severe that anything we're doing today to recapitalize the financial system is going to be undone," Roubini said.
"Financial markets are becoming totally unhinged," he said. "Fundamentals don't matter..."
"We're entering literally a vicious circle where economies are spinning down, financial markets are spinning lower, and the policy makers in my view -- and that's my biggest fear -- have lost control of what's going on in financial markets," Roubini said.
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