Mr. Nouriel Roubini is a professor and economist from my grad school alma mater, Stern-NYU, who is fondly known as Dr. Doom. You probably have heard of him by now, given that he is regularly quoted and interviewed by all the major news organizations.
Mr. Roubini has just published a new book with Mr. Stephen Mihm, “Crisis Economics – A Crash Course in the Future of Finance.” This is what economists do when they become famous; they hurry up and publish a book, while their popularity stock is rising.
I have not yet read the book, but I have read a quote from it that I would like to share with you regarding the financial crisis,
“the crisis was less a function of subprime mortgages than of a subprime financial system. Thanks to everything from warped compensation structures to corrupt ratings agencies, the global financial system rotted from the inside out. The financial crisis merely ripped the sleek and shiny skin off what had become, over the years, a gangrenous mess.”
The only thing I would like to add is that it still is still a mess--and even more rotten than when this was written…