Nouriel Roubini, a professor of economics at the Stern School of Business, NYU – who in 2006 warned the IMF that the U.S. was likely to face a catastrophic housing bust resulting in deep recession, told an audience on Tuesday at the London School of Economics that the current efforts to reform financial regulation are “cosmetic” and won’t stop another crisis.
CNBC: “The way I think about this crisis is not in terms of black swans (a sudden, rare event), but white swan events,” Roubini said. “Crises are much more common than we think.”
“We need more radical reforms,” he added. “The idea that we’ll be able to close down an institution like Goldman Sachs (GS) in an orderly way—a business that operates in nearly a hundred countries—is absurd.”
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