Early Taper Talk Caused A Spike in Long Rates

"By too early taper talk starting in May the Fed caused a spike in long rates that weakened growth and forced it NOT to taper today." - in Twitter 

Related: US 10 Year Treasuries, 30 Year Treasury Bond

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Tapering: The Consensus Got It Wrong

"As The Economist put it the Fed is a Taper Tiger. But the consensus got wrong the "silence of the doves": they were fully data dependent." - in Twitter

Related ETFs: SPDR SP 500 ETF (NYSE:SPY), SPDR Gold Trust ETF (GLD), iShares MSCI Emerging Markets (ETF) (EEM)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

The Federal Reserve Should Not And May Not Taper Today

"Based on the weak macro data the Federal Reserve should not and may not taper today. If it does it will be taper-lite with stronger forward guidance and escape clause." - in Twitter

Related indexes & ETFs: iShares MSCI Emerging Markets (ETF) (EEM), SPDR SP 500 ETF (NYSE:SPY), Nasdaq 100 Index, Dow Jones Industrials, Nasdaq Composite, iShares Russell 2000 Index (ETF) (NYSE:IWM), SPDR Gold Trust (ETF) (GLD)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

How Can The Fed Taper Now?

"New mortgages & refinancing applications are falling off the cliff as taper talk led to mortgage yields surge. How can the Fed taper now?" - in Twitter

Related ETFs: Financial Select Sector SPDR ETF (XLF), SPDR SP 500 ETF (SPY)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

US Banks Are Even-Bigger-To-Fail

"Five years after Lehman's collapse US banks are even-bigger-to-fail given consolidation: J.P. Morgan taking over Bear Stearns, Bank of America taking Countrywide & Merrill Lynch, Wells Fargo taking Wachovia." - in Twitter

Related stocks: Bank of America (BAC), J.P. Morgan (JPM), Wells Fargo (WFC)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

United States: 3 Sources Of Policy Uncertainty Will Come To A Head This Autumn

Today, the global economy is facing many known unknowns, most of which stem from policy uncertainty. "In the United States, three sources of policy uncertainty will come to a head this autumn. For starters, it remains unclear whether the Federal Reserve will begin to “taper” its open-ended quantitative easing (QE) in September or later, how fast it will reduce its purchases of long-term assets, and when and how fast it will start to raise interest rates from their current zero level. There is also the question of who will succeed Ben Bernanke as Fed Chairman. Finally, yet another partisan struggle over America’s debt ceiling could increase the risk of a government shutdown if the Republican-controlled House of Representatives and President Barack Obama and his Democratic allies cannot agree on a budget.

The first two sources of uncertainty have already affected markets. The rise in US long-term interest rates - from a low of 1.6 percent in May to recent peaks above 2.9 percent - has been driven by market fears that the Fed will taper QE too soon and too fast, and by the uncertainty surrounding Bernanke’s successor.

So far, investors have been complacent about the risks posed by the looming budget fight. They believe that – as in the past – the fiscal showdown will end with a midnight compromise that avoids both default and a government shutdown. But investors seem to underestimate how dysfunctional US national politics has become. With a majority of the Republican Party on a jihad against government spending, fiscal explosions this autumn cannot be ruled out." - in Project Syndicate

Related ETFs: Financial Select Sector SPDR (ETF) (XLF), SPDR SP 500 ETF (NYSE:SPY), iShares MSCI Emerging Markets (ETF) (EEM)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

U.S. Inequality Sharply Rising Again

"U.S. inequality sharply rising again above Gilded Age levels: Top 1% take biggest income slice on record" - in Twitter

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Sign of Labor Market Weakness

"Fall in unemployment rate is driven by fall in labor force participation rate, sign of labor market weakness with more discouraged workers." - in Twitter

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Bond Yields Are Mispriced

"Tapering of September Tapering. The Fed should not start tapering given mediocre GDP growth and labor market. Bond yields mispriced." - in Twitter

Related ETFs: Financial Select Sector SPDR (ETF) (XLF), SPDR SP 500 ETF (NYSE:SPY)

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.

Dysfunctional U.S. National Politics

"Investors seem to underestimate how dysfunctional US national politics has become." - in Twitter

Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.