Roubini: may need to shut financial markets for a week or more
NYU Professor Nouriel Roubini says we have reached a situation of “sheer panic” in the markets. “There will be massive dumping of assets” and “hundreds of hedge funds are going to go bust.”
“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…
“Things are getting very ugly also in the emerging markets,” Roubini said. “The usual saying is when the U.S. sneezes, the rest of the world catches a cold. Unfortunately, this time around the U.S. is not just sneezing, it has a severe case of chronic and persistent pneumonia. It’s becoming a mess in emerging markets.”
I agree with Buffet – it has to be a good time to buy. I wouldn’t buy it all at once, but I’d start buying in chunks over a period of months.
For day traders, it is no problem (unless they shut down the markets!) – just buy and short as usual, except with greater volatility, which can be nice.
If they shut down the markets, I’m sure the volume would surge on Intrade – there will always be a market to trade somewhere.
