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Roubini: "US banking system is insolvent"

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Yeah, but what does he know anyway? Just because he saw the credit crisis years ago and predicted this recession, he probably doesn't understand economics. It was a lucky guess and we shouldn't listen to anything he has to say unless he cheers loudly in favor of Wall Street. Give me a "W"! Give me an "A"! Oh never mind.

That was the opinion of economist Nouriel Roubini, of RGE Monitor, who was one of the first people to predict the housing crisis, speaking to "Squawk Box Europe" this morning.

Expected losses of about $2 trillion exceed bank capital of about $1.5 trillion, Roubini said.

Roubini had earlier said that total financial system losses could hit $3.6 trillion.

And "schemes" to just buy so-called toxic assets may not work, because the "risk is it's going to take too much time to resolve the problem," he added.

Instead Sweden's plan of nationalizing all insolvent banks, cleaning them up and then selling off the good assets to the private sector could be a better option, he said.

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