Thursday, December 18, 2014

Services can be taken over by Machines in future

Dr. Doom is concerned that computers and machines may eventually put the average humans out of work. 

Machines, he fears, will take away all the jobs. Roubini notes that despite dire predictions about “the end of work” the U.S. unemployment rate has averaged pretty much five per cent ever since —albeit with occasional cyclical deviations. 

Manufacturing jobs have disappeared as industrial machines have become ever more productive. But our employment bacon has been saved by services, the growing demand for which has soaked up the resulting supply of willing workers.

But what if the machines learn how to do services, as now seems to be happening? 
Roubini notes: “It becomes possible to imagine a future where the top 100 economists in the world … can provide high-quality and cheap online courses in their field. Those changes, however, would mean displacing the jobs of hundreds of thousands of other economics professors in the process.”

Monday, November 17, 2014

Roubini worried about high pollution levels in Chinese cities

When you drive around the city of Beijing, you can see people on the street wearing surgical masks, or with scarves covering their nose and mouth to try to reduce the pollution they are forced to inhale. 

The situation is so severe that the Chinese government continually monitors the count of particles in the air. On some days, when the particle count is particularly high, cars are banned from the city. 

When the number rises above 100, it’s considered dangerous. When I was in Beijing, the readings were at 300. 

Monday, November 3, 2014

Nouriel Roubini worried Republicans will take control of Congress

If the Republican Party takes full control of the US Congress in November’s mid-term election, policy gridlock is likely to worsen, risking a re-run of the damaging fiscal battles that led last year to a government shutdown and almost to a technical debt default. More broadly, the gridlock will prevent the passage of important structural reforms that the US needs to boost growth.

Monday, October 27, 2014

Goldman Sachs is a hedgefund

I've nothing against Goldman Sachs. But Goldman Sachs isn't an investment bank. Goldman Sachs is a hedge fund. It's bigger than any hedge fund. It's more leveraged, to the power of three or five, than any hedge fund.