He saw the collapse coming, but now, he is trying to offer solutions, and — being a Keynesian — his solutions are a lot worse than the actual problems.
Points of interest:
- Gold is rising not because of the fear of inflation but of sovereign defaults.
My comment: they really are the same: sovereign countries default when they don't want - or can't - print off their debt.
- Bigger banks in the Eastern countries are too big to bail out as their size is several times the GDP of these countries. This would force the EU to act and for example he suggests, taxes could go up in Germany to pay for the bailouts.
My comment: I think Roubini is confused , since most of the Eastern European Countries ARE NOT YET part of the Eurozone, and are in deep trouble. Only 16 countries are currently in the Eurozone. Some big European banks have lent a lot to ex-USSR countries, but that's another problem.
- Fiscal stimulus is required to help collapsing private demand, and this is what got the US out of the Great Depression.
My comment: It's actually quite the opposite of what happened, and the US got out of the Great Depression in spite of the destructive power of Hoover and Roosevelt. Check for yourself by reading Rothbard's America's Great Depression.
- The US is ahead of the curve because they are spending a lot and a lot.
My comment: again, this is non-sense, they are not ahead of anything, they are in very deep trouble, and they are going deeping and deeping into the whole, and are trying to take as many countries are as they can with them, by borrowing from them and hence destroying their savings, since the US will not be able to pay back what they borrow.