'Intelligent discontent is the mainspring of civilization.' -- Eugene V. Debs

Monday, February 09, 2009

they've failed and they are going to fail again 

Many of you are probably familiar with Nouriel Roubini's analysis of the collapse of the global economy, and he has little new to say here in this CNBC interview this morning, except, perhaps, a subtle emphasis that time is running out to get things right. The revelation is the insistence of Nassim Taleb that a recovery is not possible without getting rid of the people in the government and the economy that created this crisis.

Taleb is also adamant that the culture of moral hazard whereby the government backstops the speculation of bankers and investors must end. Roubini comes off the bench to drive the point home when he notes that the economy will not recover until there are incentives for people to invest in real, tangible economic activity. Unfortunately, the probability of these things happening remains nil.

Hat tip to Calculated Risk.

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