Sept. 30 (Bloomberg) -- Nouriel Roubini, chairman of Roubini Global Economics and an economics professor at New York University's Stern School of Business, talks with Bloomberg's Ken Prewitt and Tom Keene about the government's $700 billion plan to revive the credit markets, the state of the banking system and the outlook for the economy and financial markets. (Source: Bloomberg)

00:00 "Complete breakdown" of interbank lending
01:09 Treasury's rescue plan "completely flawed"
03:04 "Good thing" that House rejected plan
05:50 "Silent" run on banks, need for "triage"
07:53 "The recession is going to be severe."
08:50 Temporary "blanket guarantee" on deposits
12:21 Lehman's collapse; bank crisis; hedge funds
16:43 European banks; credit-default swap market
20:57 Outlook for congressional action on rescue
22:53 "At this point, anybody can collapse."
24:22 Need for "massive consolidation" among banks
26:03 Effects of bank crisis; market regulation
32:59 Mortgage rates; household debt; inflation
36:00 Bush's remarks on financial rescue
38:14 Need to "rethink" financial system
39:26 Investment strategy; European banks
41:20 Banks' exposure to Fannie, Freddie
42:16 Central bank monetary policy

Running time 43:51

Last Updated: September 30, 2008 11:37 EDT