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Roubini: More Global Financial Crises Coming

By    |   Tuesday, 10 May 2011 09:17 AM

While some in the financial community have grown complacent since the financial crisis ended in 2009, star economist Nouriel Roubini says more catastrophes will follow.

That’s because the banking system hasn’t really changed, with the “too big to fail” system still in place, he tells The Independent of London. "We'll see more financial crises,” Roubini predicts.

“We cannot avoid them until there is a more radical reform of the banking system."

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Nouriel Roubini
(Getty Images photo)
The New York University professor wants to see the biggest banks split in two, with a commercial banks operating separately from investment banks.

Meanwhile, the United States probably won’t truly address its budget deficit until 2014, Roubini predicts. That’s because of the political gridlock prevailing now and the presidential election looming next year.

"I think it was Winston Churchill who said the United States ends up doing the right thing after she has tried every other alternative,” Roubini says. “So the U.S. will do the right thing, the question is whether it is too late."

On the subject of the euro, he says Greece, Ireland or Portugal may exit within five years.

Some economists recommend returning to the gold standard to address the U.S. debt problem.

“The gold standard wouldn't have allowed 40 years of deficits,” David Stockman, a top economic official in the Reagan administration, told a recent conference, The New York Sun reports. “Nations were compelled to live within their means.”




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While some in the financial community have grown complacent since the financial crisis ended in 2009, star economist Nouriel Roubini says more catastrophes will follow. That s because the banking system hasn t really changed, with the too big to fail system still in...
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2011-17-10
Tuesday, 10 May 2011 09:17 AM
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