by Jack Lee
There is a growing chorus calling for nationalizing America’s banks, thus wiping out stockholders. New York University Professor Nouriel Roubini says the majority of US banks are insolvent and must be nationalized. Speaking in a Bloomberg Television interview in Davos, Switzerland, Roubini suggested that the current system of self-regulation has been a failure and the entire system must be changed. Failure to do so, he cautioned, would result in “another one of these massive asset and credit and leverage bubbles, and it’s going to be disastrous.” The professor maintains his prediction that losses in the US will more than triple to $3.6 trillion.