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Thursday, October 23, 2008

Roubini: Panic may lead to market shutdown

by Calculated Risk on 10/23/2008 11:56:00 AM


Click image for video.

Roubini Sees Crisis Worsening, Hurting Emerging Markets (Source: Bloomberg)

This is a 47 minute talk (for those with the time).

Note: if clicking on the photo doesn't work, check out the Bloomberg site.

From Bloomberg: Roubini Says `Panic' May Force Market Shutdown
Hundreds of hedge funds will fail and policy makers may need to shut financial markets for a week or more as the crisis forces investors to dump assets, New York University Professor Nouriel Roubini said.

``We've reached a situation of sheer panic,'' Roubini, who predicted the financial crisis in 2006, told a conference of hedge-fund managers in London today. ``There will be massive dumping of assets'' and ``hundreds of hedge funds are going to go bust,'' he said.
``Systemic risk has become bigger and bigger,'' Roubini said at the Hedge 2008 conference. ``We're seeing the beginning of a run on a big chunk of the hedge funds,'' and ``don't be surprised if policy makers need to close down markets for a week or two in coming days,'' he said.