December 9th, 2008 by AdvisorAnalyst

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Charlie Rose interviews Nassim Taleb, author of The Black Swan, December 4. Taleb’s outlook makes Roubini seem an optimist. The interview is 23 minutes in length. Taleb leads a fascinating discussion with Charlie Rose, rich in analogy, and with a clarity that is brings all that is going on in the financial system into the glare of daylight.

Here is an excerpt:

CHARLIE ROSE: But let me go - you mentioned Nouriel Roubini, who has been here and who has become well-known as someone who has predicted this and saw it coming, and scares the hell out of people when he comes and sits where you do, because he sees it as getting worse, and even suggests sometimes it may mark the decline of America. How bad do you think…

NASSIM NICHOLAS TALEB: I think it is worse than Roubini thinks.

No, I - I had the same story, haven’t changed my story since - and what convinced me of this is that we switched from an environment of inflation, hyperinflation, where people are afraid of commodity prices rising, to a total deflation in no time. Look at inflation bonds…

… I know that we are going have massive deflation. The overhang of debt, massive deflation. Debt needs to be reduced. And I think Paulson seems to be doing a good job, particularly that they were part of the cause of what happened, you know, it is quite commendable.

Read more from the author/contributor here.

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