Saturday, February 21, 2009

Nouriel Roubini as Interventionist

On Thursday, Roubini told us that:

The Worst Economic and Financial Crisis Since the Great Depression Reveals the Weaknesses of the Laissez Faire Anglo-Saxon Model of Capitalism

On Saturday, he called for bank nationalisation:

'Nationalize' the Banks: Interview With Nouriel Roubini

A la Alan Greenspan, he is an "I believe in free markets, except when government micro-management is an option" person:

"I believe that people react to incentives, that incentives matter, and that prices reflect the way things should be allocated. But I also believe that market economies sometimes have market failures, and when these occur, there's a role for prudential -- not excessive -- regulation of the financial system.

1 comment:

  1. Is anybody for imprudent and excessive regulation? So Roubini conveys nothing with those caveats. The whole point is that what he considers prudent and moderate, other people (including me) consider the opposite.