For all his bearishness and negativity on things, Nouriel Roubini hasn’t been all that critical of current policy. He was, for example, modestly supportive of the PPIP, a program that almost everyone else has slammed. And he’s spoken favourably of Tim Geithner’s approach to handling the banks — a delicate matter.
And it turns out, Geithner likes Roubini as well.
Institutional Risk Analytics passes along this tidbit:
One thing we learned years ago working at the Fed of New York, the senior man never talks to the media and never goes to the meeting. Maybe our friend Nouriel Roubini could whisper this into Secretary Geithner’s ear next time they spend quality time. We hear from the Big Media, BTW, that Tim Geithner’s growing corps of handlers directs media inquiries to Roubini for “an objective view” of the Secretary’s handling of the financial crisis. One Democrat asks: Could it be Larry Summers to the Fed, Roubini to the White House?
That Roubini would be seen as an ally by those in Washington isn’t that ridiculous. In the 90s, “Dr Doom” had a role in the Clinton administration, serving on the Council of Economic Advisors. And Larry Summers was previously a well-paid board member of the RGE Monitor.
When someone has a reputation for being negative, it makes the positive things they say sound much more credible than if someone else says them. So if Roubini is friendly with guys like Geithner and Summers and thus willing to make some positive comments, it only figures that they’d love to direct reporters to him when looking for an “objective” view.
Gee, even Roubini likes PPIP? It must be good.