Nouriel Roubini: Hedge fund could vanish Darwin-style

In a speech before hedge fund managers in London today economics professor Nouriel Roubini predicted a run on hedge funds that could result in 30 percent of the hedge fund assets disappearing in a "fairly Darwinian manner."

The impact on the stocks could be so severe that the market would have to be closed for a week or more.

Roubini predicted the current crash in 2006.

He predicts the worse recession in 40 years that will last at least 24 months in the United States. Roubini sees a vicious cycle occurring between the financial sector and the "real economy." Because of the tsunami of mortgage foreclosures, he suggests that the government help homeowners as they did during the Great Depression.

He sees a 40 percent drop in home prices, which would be worse than the Great Depression. And he thinks at least $3 trillion will be needed in bailouts to prevent a systemic banking failure.



Nouriel Roubini on Bloomberg TV

Asia, Europe tackle credit meltdown in Beijing

Asian and European leaders will discuss a response to the financial crisis at the 43-nation, Asia-Europe Meeting, a summit that opens Friday in Beijing.

European Union members are calling for "unprecedented" coordination between nations to tackle the global financial meltdown.

CCTV

Europe, Asia leaders in Beijing for finance talks International Herald Tribune - 2 hours ago AP BEIJING: Leaders of Europe and Asia gathered in Beijing on Thursday ahead of a summit expected to focus on a response to the global financial meltdown. Barroso says crisis needs significant coordination guardian.co.uk Asian leaders to discuss crisis Straits Times