Nouriel Roubini: Economist Who Continues to Claim He Predicted the 2008 Financial Crisis
publication date: Oct 17, 2011
I was the first financial writer back in late 2008 to highlight and document that Nouriel Roubini wasn't anywhere near as accurate as he claimed to be in supposedly predicting that year's historic financial crisis. Roubini, though, managed to dupe many in the media and ran around the globe giving speeches and reeling in new consulting clients for his economics' forecasting firm.
Now, he's evidently trying to cash in on his fame and media publicity. He has hired an investment bank to sell his company - Roubini Global Economics (RGE) according to CNBC's David Faber. I don't think that Roubini realized that when you put your firm up for sale, even though you're using an investment bank, lots of people will have access to the details of the proposed sale and the facts aren't exactly flattering to Roubini's business acumen.
In the current year, RGE is estimated to have $14 million in revenue but is expected to lose $2 million. Upon learning this, calls by CNBC to Roubini and his company's spokesman were not returned.
About Face or Covering Their Tracks?
As I said, RGE clearly didn't understand that by engaging an investment bank to find a buyer, they would let the cat out of the bag so to speak. And, they must have been worried about how the news would be received by clients so rather than calling CNBC back and truthfully asking the reasonably questions being asked about the company being for sale, RGE issued a squirrelly, semi-denial to clients according to a new CNBC report:
"Roubini Global Economics, the firm run by economist Nouriel Roubini, said in a letter to clients obtained by CNBC that the firm is not in need of capital or being sold.
"Recent press reports have suggested that RGE is experiencing difficult financial conditions and is being sold. These reports are wrong. RGE is strong, stable and independent," the note said, adding that the firm was "well capitalized" and remained "of high value to its clients."
...Roubini's letter, which addresses the financial health of the company, does not completely rule out a future sale and does not deny reports that an auction is underway."
None of this surprises me and is entirely consistent with what I've observed about Roubini in recent years. In his quest for media publicity, he repeatedly misrepresented his previous calls and track record. His actual track record of predictions made in recent years is poor.