Taleb and Roubini: Black Swans, Dr. Doom and Geithner

On Monday, Nouriel Roubini and Nassim Taleb sat down on CNBC to talk about the coming need to nationalize the banking system, basically because none of the new fixes will work. Today we got the latest version of how to fix the problem from Treasury Secretary Tim Geithner that included a lot of talk, but not much in the way of detail on how to fix the system. The market doesn't like the new plan, and the Dow is now down 375 points and bonds are rallying.

It's worth revisiting the interview to keep in mind just what remains at risk in this troubled economy. The FT calls the pair the "the (counter-intuitive) antidote" to the line of thinking among interviewers who spend much of the conversation asking what to do now in preparation for a time when everything is OK again in the market. Problem is, as Paul Krugman jokingly points out, the bearish pundits don't think it's time to be talking about a bounce back. In fact, as credit losses mount and solutions to the banking crisis look unimpressive, we're still at risk of much worse. Watch the whole thing here.