Nouriel Roubini, chairman and CEO at Roubini Macro Associates, discusses the turmoil at Credit Suisse and its impact on financial markets, the path of inflation, and investment strategy on “Bloomberg Surveillance.”
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Nouriel Roubini is a world-renowned economist, famous for his predictions of the 2008 financial crisis. Recently, he had spoken out about Credit Suisse’s crisis, inflation, and the strategy that should be employed in these times.
Credit Suisse is one of the largest banks in Switzerland, and it has been working hard to recover from a series of damaging events. One of the most significant factors involved Archegos Capital, a hedge fund that collapsed in March 2021, causing losses of around $5.5 billion. According to Roubini, this was a result of Credit Suisse’s attempt to increase its market share, taking on more risk than it could handle.
Roubini also warns that inflation may be on the rise and that many factors are driving this phenomenon, such as global supply chain disruptions, as well as an increase in demand for goods and services as economies recover from the COVID-19 pandemic. This inflation is already being felt in many sectors, including housing, food, and energy. Roubini believes that central banks must take steps to control inflation, as it could lead to a recession and a decrease in national income.
In terms of strategy, Roubini advises that the focus should be on reducing the risk of future crises. This involves looking at the structure of the financial system, which he believes has not changed significantly since the 2008 crisis. Roubini calls for stricter regulations, a focus on greater transparency in financial transactions, and the creation of a global financial watchdog.
Furthermore, Roubini highlights the need for investment in education and training, noting that this is necessary for developing the skills required to navigate the evolving economic landscape. He also emphasizes the importance of sustainable growth, calling for greater investment in renewable energy and green initiatives.
In conclusion, Nouriel Roubini’s insights are valuable for understanding the current economic climate and for developing strategies to navigate the uncertain future. His comments on Credit Suisse’s crisis highlight the importance of risk management, while his warnings about inflation emphasize the need for central banks to take action. Finally, his focus on transparency, regulation, and sustainable growth is a call to action for policymakers and businesses worldwide.
The crisis has shown us just how quickly decades of planning, investing and saving can be completely upended. This could mean your current financial plan might leave you without enough money to last your retirement. A recent Vanguard study found that, on average, a hypothetical $500K investment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less.
Nouriel predicted all of this
0:17 Anyone…how could a bank NOT know that rising interest rates decrease existing bond values? The math is Finance 101.
Can you say "PAUSE and PIVOT"?
My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless. I’ve only ever saved($510,000), never invested but want to start.
he must have a book coming out, see him everywhere now…lol
What numbers are they looking at no rescestions,,,,,,his facts are as good as my sppelling
thank you
We should train bankers about bond prices having an inverse relationship to interest rates. They just need more training.
idiots
A deteriorating economy due to high inflation can have a more detrimental impact on individuals and the overall economy compared to a declining stock or property market, as it directly impacts people's everyday expenses, causing an immediate impact. The present market outlook being overwhelmingly negative is not unexpected. Considering the current economic conditions, it is crucial to provide support to ensure our survival.
Give a man a gun and he will rob a bank, give him a bank and he will rob the world.
the banking system is in the mess it is in because of all the rigging & manipulation of everything their probably not supposed to be dabling in, but money & greed trumped the straight & narrow, suppress this suppress that short this short that rig this rig that, and in the end it came home to roost, and i called it along time ago,, when shit hit the fan the taxpayer will pay for the bailout, while the bigs at the top open accts in the canary islands. follow the money, pretty sad
This has nothing to do with financial market conditions, inflations, or interest rates but everything with criminal manipulations. Not even investment failures but outright blunt fraud – covered up by everybody who had too much money flowing into their pockets to speak up and stop the crime. They all took the position – it is too good to be true let it run as long as it takes.
Sorry but this recession isn't bringing inflation to 2%. Market needs to accept the inevitable.
USA created its own destruction but undermine their own credit. US$& Treasury become toxic assets. No Countries want nor own.
Haha> so which European banks are currently moneylaundering £billions for these effected EU Banks & their management ( before they declare defaulting much like the SVB etc. Management did? Example: MALTA will default
Turns out Dr Doom was an optimist. It’s a contest to see which loses more value … the dollar or the stock market. As dollars look for any possible tangible asset, they will flood into the stock market. But at the same time the companies are gonna be beaten to within a half inch of their lives as Main Street economy hits the fan.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects People's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this economy. The fin market;s have underperformed the U. S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $250k is down to $192k any recommendations to scale up my returns during this crash will be highly appreciated.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects People's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this economy. The fin market;s have underperformed the U. S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $250k is down to $192k any recommendations to scale up my returns during this crash will be highly appreciated.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects People's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this economy. The fin market;s have underperformed the U. S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $250k is down to $192k any recommendations to scale up my returns during this crash will be highly appreciated.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects People's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this economy. The fin market;s have underperformed the U. S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfolio of $250k is down to $192k any recommendations to scale up my returns during this crash will be highly appreciated.
If the Fed puts rates up to 6% will cause US Armageddon. You cannot seriously argue that??. It’s just a matter of time before lagging economic factors will cause an economic slowdown. Tight labour market will only cause an issue if there is persistently high inflation because wages will be forced upwards. What a pickle the central bankers have places us in. Absolute fools.
This anchor's voice reminds me of a schoolteacher with a chronic case of constipation.
27 Billion Dollars of bonds now worth zero. Watt a deal.
USA keep printing money. Go waste the Americans money on Ukraine. Great moves Biden.
Economics is such crap.
Nobody knows Jack shit.
Greed and political morons are the source of this shut society
Couldn’t go to the border but she’s doing television shows. African Americans use know better don’t like her lying ass!!
Simon I agree. It is plainly obvious that we live in a post democratic country, as do people in the West generally.
Well with the economy and stocks at where it is now, I'd be disappointed if people weren't making any error on their portfolio at this time, it was much easier to navigate during the bull-run, regardless I still see and read articles of people pulling over $225k by the weeks in trades, how come?
lol this translation on the end is so cringe
Productivity never comes by accident, It is always a result of planning, commitment and consistency. I'm grateful to God for my advisor Mr Zach Micah Demers, with his help I am now financially stable- I make 10k up to 25k weekly
I'm so sick this shyytt . How is that after the financial crisis of 2008 , US and EU can't get their act together ?
How does anyone expect to run an economy with a banking system that is a joke ?
.
The motto in 2023 will be TO BIG TO SAVE
Switzerland lost everything when they abandoned their neutrality, under duress.
America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
Lloyd Bernard
Elon Musk has finally come to our rescue, if really he can turn SVB to a digital currency counting hall with good security, its gonna help lives
when you are in a ponzi this is always going to happen
The search for eternal growth and always rising profits will always create collapses.