Wednesday
Aug122009
Dr. Nassim Taleb: "My Friend Nouriel Roubini Has A Weakness, He Likes Bernanke Too Much"
(Screenshot...video is below)
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Very special CNBC Squawk Box this morning, with Dr. Nouriel Roubini as the guest host and Black Swan, Dr. Nassim Taleb as a segment guest. We will have more from just Roubini later, but this is by far the best clip from the morning group, as it includes interplay and commentary from both. Taleb is difficult to transcribe because virtually every sentence is meaningful. Watched it twice and here's my summary.
- Debt must be converted to equity.
- Bernanke is an extremely poor bus driver.
- The markets are clueless. They mean nothing in the short term.
- We're not pessimists, we just see risks and try to warn about them.
- All the risks are still there. Our leadership was blind. We're worse off than before.
- The problems still have not been recognized.
- The problem with the Obama administration is they are rewarding all the bad actors.
- The problem is Bernanke belongs to a school of economics (Keynes) that's never been in sync with anything, especially complex financial instruments.
- Bernanke's mistakes are worse than those of Greenspan.
- Bernanke presided over this build-up of risk in the system, and didn't understand, acknowledge or even recognize it.
- The Obama administration won't stop rewarding failure.
- Cash for clunkers rewards failure.
- Instead of being penalized, the bankers have more power now than before.
- No one is working on a cure.
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Aug 12, 2009 at 1:52 PM
Reader Comments (7)
http://www.timesonline.co.uk/multimedia/archive/00597/morland-cartoon-585_597240a.jpg
That was my thought too! These guys have it right. B-52 sucks!
How can he say/prove this? For one, that Bernake is from the school of Keynes; then about Keynes' being out of sync...
I don't think there's any argument about Bernanke being a keynesian...and you may decide for yourself if deficit spending to avoid a necessary recession is a smart idea...we think not...