Submitted by Meg Wilson on September 30, 2008 - 20:20.


Nouriel Roubini (photos then and now, age 49) is an economist who has been warning about the financial crisis since 2006, when he spoke out about the dangers of the housing and credit bubble at the IMF but no one listened. (See the New York Times story.)
Roubini thinks the current bailout proposal would just be a gift to the people who caused this mess in the first place - it would be giving taxpayer money to the shareholders and unsecured debt holders of the financial sector. This would be a mega redistribution from the poor to the rich, but more crucially it would merely be a temporary fix in a leaking boat and would not save any of us from a severe depression.
He agrees huge government action is necessary, but he insists there is a much better way.
There are not many economists out there who can intelligently speak out about this. Most economists today are of the 'please let the market rule unregulated' camp. They are very simple 'Friedmanites'.
Although Roubini got his Phd at Harvard, and became an associate professor at Yale, he would never have received full professorship at an ivy league school as his views were incompatible with their bevy of ruling mathematical modelists.
Now he is one of the few people equipped to advise Congress. We'll be hearing a lot more about him. His is a rising star, and will probably become a celebrity of sorts. He may represent the new economic thinking of the 21st century. Hopefully, he'll take his new position very seriously and won't go on and on maniacally for his own celebrity benefit by spouting off doomsday scary stuff - without also supplying the specific required and detailed solutions - on his blog.
Listen to him talk today (September 30, 2008) at a Bloomsberg podcast hosted by Tom Keene: Roubini Sees `Silent' Run on Banks, Urges `Triage'
For an easier discussion to understand, see also: how lobbyists and democracy are incompatible.