Stephen Roach, Morgan Stanley chief economist, on housing recession - "we've run out of bubbles"

Man, when The Man's (Morgan Stanley) man (Roach) is this frank, exasperated, freaked out, direct and scary, you know you should be listening... After watching this video, even I'm more freaked out than before. I think I'll be visiting the local camping store later today... and moving all into diversified cash

Memo to world: We're crashing here, we're crashing hard, we've got a long way to go, and it's going to be very ugly - for us, and for you.

Here's some of Roach's quotes

"the housing section is in a recession that has just begun... going to take a big toll on the US economy"

"All investors are inherently predisposed to hope for soft landings"

"We have a major bubble bursting before our very eyes"

"We've run out of bubbles"

"We have the worlds worst savings problem in the history of the world"

"We've got too much consumption and too little national saving"

"We've got to have a pro-savings policy in the United States.. we're afraid to do it. You've got to bite the bullet and do unpopular things"

He also points out that just as consumers run out of excess cash (with the housing ATM closed) they'll have to increase their savings rate (to get ready for retirement) which will be the mother of all double whammy's for the US consumer-driven economy

Also, doesn't the Bloomberg bull broadcaster seem like she's personally freaked out about her home's price - affecting her responses? Maybe her husband has investment properties?

Trinity, that is a good question. I know since the alligators are snapping at my rear, people always say the banks hate to take your house from you, they will work with you. Oh? Someone should tell the banks that.