Nouriel 'Dr. Doom' Roubini: ‘Karl Marx Was Right’ (Joseph Lazzaro)

Aug. 13, 2011 (International Business Times) -- There's an old axiom that goes, "wise is the person who appreciates candor almost as much as good news." With that as a guide, place the forthcoming decidedly in the category of candor.

Economist Nouriel "Dr. Doom" Roubini, the New York University professor who four years ago accurately predicted the global financial crisis, said one of economist Karl Marx's critiques of capitalism is playing itself out in the current global financial crisis.

Marx, among other theories, argued that capitalism had an internal contradiction that would cyclically lead to crises, and that, at minimum, would place pressure on the economic system.

Companies, Roubini said, are motivated to minimize costs, to save and stockpile cash, but this leads to less money in the hands of employees, which means they have less money to spend and flow back to companies.

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