posted on Jul, 2 2009 @ 01:19 PM
The financial system is crashing and action must be taken by the US government to convert debt into equity to produce a more stable environment,
Nassim Taleb, author of "The Black Swan," told CNBC Thursday.
"You may have green shoots, whatever you want to call them, you may have temporary relief, but you are still in a world that's breaking," Taleb
said on "Squawk Box."
Anything that's fragile like the financial system will eventually crash, he said.
"We're in the middle of a crash," Taleb said. "So if I'm going to forecast something, it is that it's going to get worse, not better."
The government needs to deleverage debt and not try stimulus packages that will inflate assets, he said.
"What makes me very pessimistic in not seeing any leadership or awareness on parts of government on what has to be done, which is deleverage
$40-to-$70 trillion," Taleb said.
"The monkey on our back is debt," he added.
So when can we trust the media ? they constantly go one way on this, then some one else goes the other way.
When they say ' it will get better in a year or so', I'm guessing that is just to keep people in the calm state ..