'Dr Doom' Calls For The Break Up Of Goldman Sachs

One of the many things mentioned in Nouriel Roubini's new book, written with economist and historian Stephen Mihm, 'Crisis Economics - A Crash Course In The Future of Finance', is that the 'too-big-to-fail' financial institutions, like Goldman Sachs, should be broken up.

As far back as 2005, Professor Nouriel Roubini - aka 'Dr Doom' - warned that the US housing bubble was set to crash, and what would begin as a national disease would soon spread overseas resulting in a deep recession. Free market fundamentalism would fail and we'd be faced with the worst economic crisis in history, crippling the global economy and bringing the world's financial systems to a shuddering halt.

In Crisis Economic - A Crash Course In The Future Of Finance, Roubini and Mihm offer a course for the future - radical reform of the international financial order and a clear view of regulation, supervision and greater coordination between central banks in Europe, Asia and the United States.

Their solutions include the break-up of the likes of Bank of America, Citi, JPMorgan Chase, and Goldman Sachs to name a few, changing banker compensation so that bonuses recipients retain 'skin in the game', and to heavily regulated (if not ban altogether) CDOs, something the authors refer to as 'Chernobly Death Obligations'.

About the authors

Nouriel Roubini is a professor of economics at New York University's Stern School of Business. He has extensive senior policy experience in the federal government, having served from1998 to 2000 in the White House and the U.S. Treasury. He is the founder and chairman of Roubini Global Economics, an economic and financial consulting firm, regularly attends and presents his views at the World Economic Forum at Davos, Switzerland, and other international forums, and is an adviser to central bankers around the world.

Stephen Mihm writes on economic and historical topics for The New York Times Magazine, The Boston Globe, and other publications. The recipient of numerous fellowships, he was the Newcomen Postdoctoral Fellow in Business at Harvard Business School from 2003 to 2004. He is currently an associate professor of history at the University of Georgia, where he teaches courses on American political, cultural, and economic history.

'In Crisis Economic - A Crash Course In The Future Of Finance' is published by Penguin

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