Both Grantham and Roubini offered their views on what the Fed did to markets in the documentary, and what could happen next."People like myself, like Larry Summers and others, saw that that massive stimulus — it was unprecedented, an order of magnitude greater than the one we had after the [2008] global financial crisis — would lead to excessive demand, overheating and inflation," Roubini said.
"We had bailout checks sent to everybody — every household, every firm, every financial institution. It was too much and should have been more selective.""We have had literally a few decades of ever-increasing bubbles that have been fed and supported by central banks. And not only have we had bubbles, but we've had bubbles that have been fed by excessive leverage, excessive private and public borrowing and excessive risk-taking," Roubini said. "The party is over.
Interviewer James Jacoby:"When you say 'we,' you mean you and other members of the financial community have been this kind of bloodsucker on the economy? Is that what you're saying?" "Yes. Collectively we fulfill a completely necessary service, but what we have done is created layers upon layers of more and more convoluted, expensive financial instruments. And that's what makes all the profits for the financial industry. It's taken a lot of ingenuity and salesmanship to make this happen, and a lot of lobbying in Congress, and we have imposed on the rest of the economy the idea that banking and finance are utterly important at all times.
Called 12 of every 3 market crashes. Perma bears.
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Brace for 50% market crash, recession as 'everything bubble' bursts: GranthamBrace for the S&P 500 to plunge 50% and a painful recession to strike as the 'everything bubble' bursts, elite investor Jeremy Grantham warns how does anyone still value Grantham's broken clock analysis? Other than that, how was the play, Mrs Lincoln ?
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