It's pathetic how hard CNBC tries to spin Roubini and Taleb's statements, and how hard they look for "glimmerings of hope."
One of the bubbly newsbabes even posited that since people are finally desperate enough to listen to Roubini and Taleb, that the market must have finally hit bottom. (Meaning, it's going to start going up). Taleb would have nothing of it. He said the system needs to be completely changed, change our culture, and live with less debt. And most important, Taleb said banks need to change their incentive systems, which encourage bankers to take on hidden risk in pursuit of short-term bonuses: "Wall Street can no longer operate like before." And: "Those who one day may need to be bailed out need to be nationalized now." The CNBC panel, which is used to kissing Wall Street's behind, was going nuts.
Roubini also favors government nationalizing the insolvent banks and then re-selling them. He said, "Cash is king," and he's not invested in the market. "We need more sustainable [economic] growth based on real investment in human and physical capital," not an economy based on unproductive housing or dot-com bubbles.
Nouriel Roubini and Nassim Taleb Spreading Doom & Gloom on CNBC
February 9, 2009 | CNBC
URL: http://www.cnbc.com/id/15840232?video=1027496846&play=1.
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