Roubini predicted this mess in 2006, but did anybody listen? Nooooo ….
Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.
“We’ve reached a situation of sheer panic,” Roubini, who predicted the financial crisis in 2006, told a conference of hedge-fund managers in London today. “There will be massive dumping of assets” and “hundreds of hedge funds are going to go bust,” he said.
“Systemic risk has become bigger and bigger,” Roubini said at the Hedge 2008 conference. “We’re seeing the beginning of a run on a big chunk of the hedge funds,” and “don’t be surprised if policy makers need to close down markets for a week or two in coming days,” he said.
See you on the breadlines. More after the jump.
And just in case you missed it, here’s a little exchange between two employees at Standard & Poor’s:
Rahul Dilip Shah: btw: that deal is ridiculous
Shannon Mooney: I know right … model def does not capture half of the risk
Rahul Dilip Shah: we should not be rating it
Shannon Mooney: we rate every deal
Shannon Mooney: it could be structured by cows and we would rate it
House Oversight Committee transcript from April 2007.
Ah, the free market.
Finally - please go by Liberal Revolt - there are a series of videos up that show the Psychogeezer to be, well, a psychotic geezer. Scary how many symptoms of demetia he exhibits.