Roubini: Banks Are Too Big To Fail But Also Too Big To Be Bailed; Everything Becomes Worse

Ubiquitous Nouriel Roubini was on CNBC today arguing his bear case (watch video below).

"A year ago we had all these policy bullets," "We could push down rates to zero, we had (quantitative easing), we could do a budget deficit of 10 percent of GDP (or) backstop the financial system."

"Banks at this point are too big to fail, but also too big to be bailed, especially in Europe where the sovereigns are in trouble and therefore the ability to backstop the financial system is not there,"

"Everything signals a slowdown of the US, a slowdown of Europe, a slowdown of Japan and a slowdown of China,"

"everything becomes worse," "The unemployment rate goes higher, the budget deficit is larger, home prices don't stabilize, but fall further and trade tensions with China will be bigger"

"You don't need to have a double dip recession to have a situation that is dismal,"

"We're going to have a global slowdown," he said.