Today’s rebound in stocks and other risk assets was anemic and did zero to reverse the strains spreading through financial markets and the real economy. The segment below with “Dr. Realist” Nouriel Roubini offers some useful perspective on forces at work here.
Again, while many politicians and long-always asset allocators are trying to blame present stress on an unforeseeable virus outbreak, the seeds of this cycle’s demise have been sown long and thick, through years of bad policy and financially destructive choices.
It is no small feat to pack so much complex detail and big picture clarity cogently into an 8-minute segment, as Nouriel does below. Embarrassingly, host Sarah says his comments are “scaring her.” This reminds, yet again, that financial-tainment hosts pose as experts and spend their day talking about how to ‘play’ markets while treating every loss cycle as a meteor from space that no one saw coming.
As if financial conditions have not been terrifying for some time now, at least, to fiduciaries who actually manage risk for a living. Some of us have been taking the measurements, actively working to protect capital, and warning publicly, while the oblivious, willfully blind, and reckless have been playing fast and loose with life plans and livelihoods. Unfortunately, many participants play a leading role in their own demise, repeatedly.
Nouriel Roubini, Chairman of Roubini Macro Associates and Professor of Economics at NYU’s Stern School of Business, joins ‘Closing Bell’ to discuss markets due to the coronavirus. Here is a direct video link.
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