Roubini certainly called the begining of this crisis, hope he is right about the ending. But he is calling for US unempolyment rage going up to 10%, and the rapid decreasing in exports will put China to recession.
US government is currently borrowing money at close to 0%, and lending at huge premium (8%-12%?), the whole world is buying US treasury and US$. If the economy can recover in couple of years, US Gov will come out way ahead. At that time, not only it can sell the shares back to the market, it can devalue the currency, buy back US$ and US debt at a huge discount.
I think US will come out as a winner when the financial crisis ends. I know it looks bad right now with people calling for dow 5000 and a depressing equity market for the next 10 years... etc. I am not that pessimistic, I don\'t believe the extremes one way or another. Somehow the world will find its balance, it always has. Keep smiling Yani. :-)
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