Nouriel Roubini Speaks To Fox Business Network About Too Big To Fail

Nouriel Roubini, noted New York University economics professor and Chairman of Roubini Global Economics, spoke to Fox Business Network's Liz MacDonald and Charlie Gasparino about his call to break up banks and "too big to fail." Excerpts are included below courtesy of Fox Business Network. On his call for the breakup of the banks: “We have to resolve the “too big to fail” problem. Now banks are becoming even bigger to fail. We have to separate commercial from investment banking…they are becoming too big to fail but also too big to be saved, too big to bail out. We need proper regulation and supervision of the banks…and the security stuff should be separated from the banks. Using tax payers’ money in order to do risky stuff …implies this moral hazard problem...is going to happen over and over again. When we do it, it could be done gradually.” On whether the U.S. is headed to a third depression: “I don’t think we are going to have a third depression but the risk of a double dip recession are risign. Even in the US, the growth the second half of the year is going to fall towards one and a half per cent. The economy is weakening.” On whether he is worried about U.S fiscal austerity: “It’s a concern. In the short run, rates are falling lower. For the time being, rates are going to stay low despite the trillion dollar budget.”