Markets

Dec 17: Nouriel Roubini on culprits of the crisis

Part 2, December 17 2008: Nouriel Roubini, Professor of Economics at Stern School of Business at NYU and chairman of RGE Monitor, blames the Federal Reserve, regulators, the greed and arrogance of Wall Street and credit rating agencies for fuelling a global asset bubble. The financial system has already changed radically. The times of self-regulation - which means no regulation - are gone. There is always a question of who regulates the regulators. A significant amount of fiscal resources should be devoted to appropriate regulation, the system needs more regulators and more auditors. This is not the end of capitalism or the end of market economies, but there has to be an appropriate role for governments to make sure the financial system and the real economy are working the way they should.