Economist Nouriel Roubini skyrocketed to fame as the first to foretell the crash of 2007/2008 (a claim that overlooks the even earlier warnings from Stiglitz and Krugman).
In 2011 Roubini sparked controversy by writing that capitalism was self-destructing, much as Karl Marx predicted.
Now, writing in The Guardian, Roubini warns of what may befall us in the anticipated crash of 2020. This time there'll be no repeat of 2007-8. Back then governments were relatively flush and able to fund bailouts and stimulus spending. Today, they're broke, their treasuries bare.
Roubini can't predict what our governments will do when the public demands they 'do something NOW, but he warns that "'crazy' policy will become a foregone conclusion." The only question is whether they'll do more harm than good.
In other words, we're heading for a crap shoot.
3 comments:
Well Mound, I think that's been a forgone conclusion for some time now, unfortunately the first reaction of governments will be to cut what few climate change initiatives there are in the name of 'efficiencies'. Our kids will pay the price ....if they survive the financial and climate disaster...?
The question of what spending might get axed hadn't crossed my mind, Rural. Then again we are accustomed to treating future generations as our "sin eaters."
Not only were some governments in better shape, one in particular had a better President. the current on, just isn't up to the job nor does he inspire any one. His solution may be to take the money of the billionaires. Unfortunately that won't work, they'll be gone. at that point things will not go well in the U.S.A. They don't even have a decent social infrastructure. On the upside, when people have no money to spend, the environment may have a chance to recover.
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