Dr. Doom: 2 more years, no bottom yet; where is Geithner?

images-2The man of the hour, Dr. Doom aka Nouriel Roubini of the NYU Business School, suggests we are in a prolonged U shaped recession that has at least 20 months to go. He is worried, though, that continued propping up of the zombie banks means that we have not yet found a bottom.

Today’s markets certainly seem to confirm the view that a darker view is settling in.

Meanwhile, “Little Tim” Geithner is nowhere to be found. Instead the WH trotted out their PRESS secretary to calm the markets?!?  Good lord, there is no leadership here, just whistling in the wind. Even Republicans like James Baker are giving the green light to bank nationalization (although he does not call it that). (See Baker’s FT column on killing the zombies here.)

But still Obama fiddles while the markets burn.

2 thoughts on “Dr. Doom: 2 more years, no bottom yet; where is Geithner?”

  1. I saw that clip and at first had the same reaction. But if you watch carefully you will note that Obama shakes hands with the elected Congressional representatives but not with either Geithner or Larry Summers, who are his officers. Thus, what might appear to have been a snub was probably a matter of political protocol.

    The larger point is made by the absence of Paul Volker. He seems to have been shunted aside to work with the VP, Biden. Of course that is where the labor people have been stuck along with Jared Bernstein.

    Since Geithner is viewed as far less capable than Summers I think it is safe to say that on economic policy these days Larry Summers is playing the same role as Dick Cheney did on foreign policy in the Bush administration.

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