One more prophet of doom…Is a black swan in the making?

The financial system in the US and, God forbid, that of ROW seems to be in for Black Swan events. Even if you and I may not agree with the dire predictions, it makes sense to hedge our situation as far as our financial assets are concerned..read this piece.

FT.com / Columnists / Martin Wolf – America’s economy risks mother of all meltdowns

Recently, Professor Roubini’s scenarios have been dire enough to make the flesh creep. But his thinking deserves to be taken seriously. He first predicted a US recession in July 2006*. At that time, his view was extremely controversial. It is so no longer. Now he states that there is “a rising probability of a ‘catastrophic’ financial and economic outcome”**. The characteristics of this scenario are, he argues: “A vicious circle where a deep recession makes the financial losses more severe and where, in turn, large and growing financial losses and a financial meltdown make the recession even more severe.”

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