A Season for Cassandras

The meltdown in the credit markets is sweet vindication for some prognosticators who had been dismissed as merchants of gloom

For 16 years, Stephen Roach served as chief economist at Morgan Stanley (MS) and proved to be one of the gloomiest voices on Wall Street. Take for example his July, 2005, critique of incoming Federal Reserve chairman, Ben Bernanke. Roach wrote of "the mounting pitfalls of yet another post-bubble shakeout—this one dominated by the downside of overvalued property markets and the concomitant unwinding of a potentially lethal debt cycle."

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