The financial system is crashing and action must be taken by the US government to convert debt into equity to produce a more stable environment, Nassim Taleb, author of "The Black Swan," told CNBC Thursday.
"You may have green shoots, whatever you want to call them, you may have temporary relief, but you are still in a world that's breaking," Taleb said on "Squawk Box."
Anything that's fragile like the financial system will eventually crash, he said.
"We're in the middle of a crash," Taleb said. "So if I'm going to forecast something, it is that it's going to get worse, not better."
The government needs to deleverage debt and not try stimulus packages that will inflate assets, he said.
"What makes me very pessimistic in not seeing any leadership or awareness on parts of government on what has to be done, which is deleverage $40-to-$70 trillion," Taleb said.
"The monkey on our back is debt," he added.
As an example, Taleb said banks should not be sending demands for larger and larger sums from homeowner in arrears on their mortgage. Instead the bank should offer to lower the monthly payments in return for part-ownership of the property.
"People would be able to start from scratch on a healthy basis. You don't want to wait for foreclosure," he said.
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CNBC has said this wow i am amazed , it seems mainstream news agencies are starting to peak at the light here , on CBC and CTV also , maybe their agenda isnt to fool us or to propagandize us any longer , or maybe they are pretending like Glen Beck , that fu cking weasel
ReplyDeleteYes - Beck is a trojan horse weasel. Set up to be someone who can easily be ridiculed for his beliefs, which are not really his at all.
ReplyDeleteI spent the past nine years calling George W Bush and dimwit Labor Secretary Elaine Chao two of the biggest liars in US history. In the US, it takes the creation of 100K-130K new jobs created PER MONTH just to absorb new graduates into the workforce. If your job has gone offshore, Republicans don't care as long as Republicans haven't raised taxes on CEOs.
ReplyDeleteWe have proof Republican tax cuts don't work to create jobs: the labor pool available in India and China are way too large. The joke on the American middle class is that if Elaine Chao lived in China, she would have been put in front of a firing squad as an incompetent bureaucrat. In the US, she is the longest serving member of Bush's Cabinet.
Put your bills on Elaine Chao's desk by sending them THROUGH Mitch McConnell R-Ky, her husband. If you can tie up someone's office in Washington, DC, with mail, you can get attention.
They don't care. They cannot be in positions of power without working for the banks. They sadly don't get a shit if you send ten thousand letters. Same with Obama - in fact he is actually the worst ever. Bought and paid for via Goldmann Sachs.
ReplyDeleteSee what the economist Nouriel Roubini said about the current and future state of our global economy
ReplyDeletehttp://www.rgemonitor.com/roubini-monitor/257210/us_job_report_suggests_that_green_shoots_are_mostly_yellow_weeds
This is not going to end well...
I'm not defending Bush or Republicans in general, but tax cuts do work. Just because jobs were shifted off shore does not make it true that cutting taxes doesn't work, correlation does not equal causation. Tax cuts always produce jobs in some sector or another, when you let people keep their money they spend it on stuff and starting businesses - that is the truth. When government takes it it produces far less jobs.
ReplyDeleteTaleb is not necessarily arguing his black swan theory for the sake of accuracy. In fact, the theory itself is based on the predictability of unpredictable events. Essentially, Taleb says that no matter how hard we try to predict events, a black swan will always emerge. We, on this web site, may think we know what is going to happen to this economy -- and chances are, we are crashing -- but there will be unpredictable events that occur over the next several years that will probably blow our minds because we didn't even realize the possibility existed.
ReplyDeleteSHTF Mac
Anonymous 45 to contributors:
ReplyDeleteWe may as well all wake up and connect the dots, thus creating the picture we are so desperately trying to deny in our own minds. The only common thread in all of Obama's actions is to KEEP THE DEBT INCREASING. He works for the Bilderberg banking group, NOT YOU. A leak from their April meeting in Greece told that the first step in achieving their world government is the immediate collapse of the US dollar. Obama is doing just that and is being well paid for it, rest assured.
Do you really think his thoughtless plans will actually WORK? Do you really think he gives a damn about Detroit, or YOUR job, or this economy or this country at all, or whether you can pay your electric bill or especially YOUR HEALTH? If you do you're fooling yourself to the Nth degree.
A Zimbabwe dollar won't put any food on your table but it will surely produce civil unrest, which is exactly what is needed for martial law Obama style.
Look at the attacks on the Constitution, that's right the one he swore to uphold on that dark day (January 20, 2009).
I defy anyone who seriously looks at his ACTIONS to draw a different conclusion.
but the most surprising thing to everybody was when Obama reinstituted racial slavery, saying that states rights had been unlawfully abrogated during the civil war...
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