Roubini: 'Sheer panic may force market shutdown...'
by bobswern, Thu Oct 23, 2008 at 06:25:23 PM EDT
Nouriel Roubini, the prescient NYU Economics Professor and former Clinton administration economist who's maintained a more accurate forecast of our global financial crisis for a longer period of time than just about anyone, today predicted on Bloomberg TV that the markets have reached a situation of "sheer panic."
Oct. 23 (Bloomberg) --
``We've reached a situation of sheer panic,'' Roubini, who predicted the financial crisis in 2006, said at a conference in London today. ``There will be massive dumping of assets,'' and ``hundreds of hedge funds are going to go bust,'' he said.
``Systemic risk has become bigger and bigger,'' Roubini said at the Hedge 2008 conference. ``We're seeing the beginning of a run on a big chunk of the hedge funds,'' and ``don't be surprised if policy makers need to close down markets for a week or two in coming days,'' he said.
"...It's becoming a mess in emerging markets.''
"There are about a dozen emerging markets that are now in severe financial trouble,'' Roubini said. (The article mentioned: Belarus, Hungary, Iceland, Pakistan and Ukraine, in particular.) "Even a small country can have a systemic effect on the global economy,'' he added. "There is not going to be enough IMF money to support them.''
"... I fear the worst is ahead of us.''