Wednesday , 17 April 2024

More Roubini: Fed May Not be Able to Prevent Next Stock Market Plunge

Nouriel Roubini thinks things could get bad after the U.S. presidential elections in November, so bad that the Fed may not be able to prevent the next stock market plunge, and may even go so far as to  buy stocks to keep things afloat at some point. Read on to find out what else Dr. Doom thinks might be in store for us.] Words: 310

So conveys Matthew Boesler ( in edited excerpts from his original post*.

Lorimer Wilson, editor of (Your Key to Making Money!) and (A site for sore eyes and inquisitive minds) has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Boesler goes on to say, in part:

Roubini, known as “Dr. Doom” and the forecaster of the “global perfect storm” for the world economy in 2013 [read: Nouriel Roubini: 2013 Perfect Storm Scenario Unfolding as Predicted! OK Nouriel, So What Do You Suggest Investors Do??], told Reuters that the Fed may not be able to prevent the next stock market plunge.

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Roubini told Reuters that the Federal Reserve may be pushed toward unconventional policy options as the stimulative effect of successive waves of quantitative easing – effectively printing money to buy government bonds – diminishes over time. Such unconventional policy could include:

  • targeting the 10-year Treasury at 1 percent,
  • doing credit easing rather than quantitative easing,
  • targeting nominal GDP,
  • price-level targeting,
  • lots of stuff that is more esoteric and,
  • eventually if everything goes wrong, they could even buy equities.

Roubini also thinks that “Greece is not going to exit until November. Things are not going to blow up until after November. Everybody is kicking the can down the road. We are kicking the can down the road on our fiscal issues. China is kicking the can down the road on their own structural issues because of a changing leadership. The Europeans want to avoid pulling the plug on Greece until maybe next year. We are not going to have a war with Iran until after the election…next year is the time where the can becomes too big to kick it down, and it hits a big, thick brick wall, and then we have a global perfect storm.”

* (To access the above article please copy the URL and paste it into your browser.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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