On Mar 30, 11:49=A0pm, indiaBPOking <indiabpok...@[EMAIL PROTECTED]
> wrote:
> http://english.chosun.com/w21data/html/news/200803/200803190009.html
>
> Is the U.S. economy heading for a total meltdown? A Samsung Securities
> re****t released on Tuesday that cites a hypothesis by economist
> Nouriel Roubini suggests it may be.
>
> "A 12-step scenario for descent to financial disaster presented in
> 2006 by Nouriel Roubini, a professor at New York University's Stern
> School of Business, is turning into reality," the re****t said.
>
> Ultra-pessimist Roubini outlined his 12-step scenario for U.S.
> economic and financial meltdown in July 2006. In the first step to
> financial disaster, he cites the housing recession -- the worst in
> U.S. history.
>
> According to his scenario, the U.S. economy will go from bad to worse
> following these steps: the spread of the subprime mortgage crisis to
> near prime and prime mortgages (step two), credit problems lead to a
> sharp increase in defaults on consumer debt such as credit-cards (step
> three), monoline insurers start to fail, casting doubt on their bond
> ratings (step four), and the commercial real estate loan market begins
> to meltdown (step five).
>
> In the sixth step, a large regional or even a national bank fails,
> prompting the specter of bank runs and forcing the Federal Reserve to
> commit to bailouts. In the seventh step, banks take a hit from
> reckless leveraged buyouts during the credit bubble era.
>
> In the eighth step, a huge wave of cor****ate defaults takes place and
> fear of counterparty risk looms large, deepening the credit freeze. In
> the ninth step, the "shadow banking system" collapses.
>
> In the 10th step, stock markets in the U.S. and abroad sink and the
> S&P 500 loses 25 percent of its value. In the 11th step, credit
> spreads widen, which not only makes the Fed's policy tool of cutting
> rates ineffective, but also spurs a widespread liquidity crisis.
>
> Finally, in the 12th step, the liquidity problems force assets to sell
> at an unwarranted discount, given the assets' underlying value. This
> becomes a downward spiral for all sorts of investments.
Well BO, where is the continuation of that forecast and what effects
it will have on the rest of the world if true. Think you **** hole of
a country, India will escape the effects? So cheer on moron but be
aware of the consequences.
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