LOL. Its intereting that lenders have been around for centuries then all the sudden a extreme government intervention takes place(fed dropping rates to historical lows of 1% in a world that is much easier to get credit compared to the last time rates were this low due development of finance) we have a bubble and a crisis and he wants to put the blame on 'greed and predatory behavior from lenders and free market hacks' http://www.rgemonitor.com/blog/roubini/184125 I have news for you pal, this people were just as greedy thirdy or twenty years ago, their no more greedy than you
Roubini is an excellent economist but unfortunately doesn't fully understand the banking system and the Fed's role in this bubble.
Really ?? Since you acknowledge that he is an " excellent economist ", how can you claim that he won't underdtand the things that you believe that YOU understand ? Dr Roubini , for your info was one the White House economists working with President Clinton. If anyone can understand the banking system and the Fed's role, it is HIM.
Because he blames the free market. He seems to not understand that under a real free market there would be no government-controlled banking system, and thus no possibilities for such huge bubbles in housing and stocks.
A free market has no government intervention / regulation, and definitely no central bank. I'm not aware of any country nowadays without a central bank and extensive banking regulation, but the US in the 19th century was quite free. At least there was no central bank for most of the time. I would claim that countries with a central bank are more prone to bubbles. Of course there were bubbles and banking panics also in the 19th century, but I think they were not as serious as during the 20th century when central banks emerged more dominant.