Roubini: The New Dollar Carry-Trade Is a Disaster in the Making

OK, but what does he suggest is the solution to this? I know he is not for Fed tightening right now. That would be crazy with 10% unemployment. Basically, a lower dollar and inflation is the most politically expedient way of paying and dealing with this crisis.

The future ain't what it used to be!

get out of the dollar before you get crushed. Do it. Do it now.

Fade Roubini and go long the dollar. He's a contrarian indicator. When there's blood in the streets, you BUY.

Weak dollar and inflation won't be politically expedient when senior citizen retirees on a fixed income finally wake up and smell the coffee. Pubs & Crats are trying to transfer wealth from responsible savers and future generations and eventually it will catch up with the society. Responsible people suffer, the irresponsible profit so what's the point in being productive and responsible. TG shows the way: cheat on your taxes and get appointed Sec Treas.

Let's read one of your books, Johnny. Here, let's read the farm book. Open it up. Oh, that's a picture of an American standing in line on election day. What is the sound they make, Johnny? Baaaaaaa Baaaaaaa Baaaaaaa .... Very good, Johnny! That's right!

Thank you Mr. Mulally! You did a great job at Boeing and a better job at Ford!

I give Roubini credit for calling the market top and warning of the danger when everyone else, including the CNBC beauties, were laughing at his pessimism. That said, he's gotten way too complicated in his analysis here and extrapolating all of that into a bearish outlook is tenuous at best, and probably wrong, at most likely. All for one simple reason: The markets will never go away...someone will ALWAYS be on the other side of the trade...and those 'someones' usually are the ones who make the 'rules of the game'...and can and will change them to make sure the planet's economic system doesn't implode completely. The system's been evolving since long before any of us reading this were around...and will continue to do so long after we're gone.

We need to stop being the worlds SUGAR DADDY. All the countries we(tax payer money) are giving them as aid must stop. Stop 50 % in 2010, 25% in 2011 and the rest in 2012. The countries that receive our free money is like a lazy grown child who keeps getting money from mom and dad. The child is to lazy to go out and work for it. Bring all that money back home. This will pay for all our medical needs, education for everyone who desires to get an education plus stop all undocumented folks. If they do not like it they can take a long walk off a short pier.

The UAW destroyed the American Auto industry and threatened national security. "You made a nickel- gimme four cents" mentality. Those non-skilled UAW "Bubbas" need to go. FOLKS: Buy American-made non-UAW cars: many Toyotas, Nissans and Hondas. Send these legal extortionists a message: UP with America, **~~DOWN with the UAW~~**

When the music stops and everyone begins to fight for the last remaining chair, the carry trade bubble will have an ugly ending as do all bubbles.

Why doesn't Obama give this guy a job? Then Obama can punt the jokers like Summers and Geithner who caused this mess!

No matter where you turn these days there is no reality. The markets are so completely manipulated, we live in a fake economy and the same mistakes are being repeated over and over. Don't look to the news, pundits, markets, etc. for your answers. Use your commonsense and keep your eyes focused on what is real all about you. Don't get sucked into all the little distractions being put out for just that reason. Keep your eyes upon the reality around you.

That is exactly why Brazil as part or BRIC is allowing China to buy up and invest in Brazilian natural resources. One catch, you must buy in Brazilian currency which forces dollars sales back in China to balance its basket of reserves. Face it, the US is still securitizing debt with 20 to one leverage and has been at the forefront of trying to push the entire gold market to a paper market. They have attempted to print down the debt while still creating new debt to facilitate old debt. Debt is debt. If you are investing in an asset class that is artificially frozen at elevated levels due to government intervention to create the catalyst, good things cannot happen! We must deleverage now or we will simply see open market transactions to rteduce dollar holdings continue at 62 cents on the ole dollar. Tim Bishop, our great congressman from New York had this knowledge during the summer of 2008 and did nothing about it. We can still salvage our currency, we must be brave and understand that it will come at the expense of some very wealthy families in banking around the globe, WE can survive America... fight back..

Hazen is right. We give money away like rice at a Chinese dinner. Look, for example, the ads on TV showing "millions of starving kids" some with flies on their faces. Yes, that is sad. Very sad for a human being to live like that. . .but, here's an idea: Pass out condoms! Where do you think that kid originated from? A $0.05 piece of rubber can save a lot of money and a LOT of human suffering. Oh, btw, we have kids starving here in AMERICA? No way. Tell Angelina Jolie! Let's be real here- AMERICA FIRST!

The problem actually started when Wall St. started investing our retirement 401k, IRA, pension money globally. This has caused a shift in spreading our money throughout the world at the expense of prudent USA domestic investing. When this gets coupled with Congress giving our tax money away to foreign entities it's a net net negative affect on the USA growth. Then there's the $Trillions that got vaporized by the 40 to 1 mortgage packaging by Wall St. and approved by Congress with Clinton's signature. It all starts with the lifetime crooked politicians in Congress. No Senator should be in office more than 2 terms (12 years) and no Congressmen/women should be in office more than 3 terms (6 years) otherwise they do too much harm to us all. VOTE OUT the INCUMBENTS in 2010.

1928-1929; as the consumer was tapped out and could no longer buy new cars & appliances on credit; ...everywhere workers were laid off and the real economy was faltering......BUT THE STOCK MARKET ROARED ON! The market had a life of it's own, not based on any reality but it's own delusions.

The doom and gloom man of the century must publicly appear calm and rational for one particular reason. There is no need to panic....Wow! The current president and his administration has informed the public that the economy is on the mend. The real story here is: Some Americans refuse to believe the interventionist strategy by the government will lead to genuine economic prosperity. That is a common sense conclusion and a very legitimate concern. The companies that put Americans to work will hire again. That time will come when they make the adjustment from the old economy to the new. Once again the Liberal Nation is upon us all and now is the time to prepare for the new and put away the old style of doing business. Panic is a fanatical mans revenge for fear of being left behind... smiles....This could have been why the life boats were half full, or some would say, half empty. Don't panic, it serves no purpose. Later Gang!

The real issue is when the US gets away with inflating its own fiat currency other governments cant resist getting in on the action - our inflation creates uncomfortable issues for all other governments because they are already addicted to fiat currency and their own version of Federal Reserve machinations.

I just can't respect anything that Roubini says. I never heard of him until the past year, and he's been nothing but spectacularly wrong about nearly everything since.