Nouriel Roubini | Nov 18, 2008 Here is below the annotated transcript of my talk at the American Enterprise Institutes September 30, 2008 seminar “The Deflating Mortgage and Housing Bubble, Part IV: Where Is the Bottom?” The transcript is courtesy of The Housing Doom. For those who are interested there is also a video version of my talk. Nouriel Roubini: [23:34] Well, Desmond Lachman described very well in his remarks why things are being paid worse rather than surpass in the housing market, and I share his outlook and pessimism. I want to elaborate on the broader picture about whats happening in the economy and the financial markets. Ive been saying for a while this will be the worst financial crisis the US has experienced since the Fantastic Depression and it looks like the worst one. I mean I dont reflect theres anything thats happened since the Fantastic Depression looks so severe. Of course the real monetary consequences in terms of output contraction are not going to be as terrible as the Fantastic Depression because there is a massive amount of policy proceedings, but in terms of financial shock, I mean what does happen in the last few months is really quite unbelievable, every other week another major financial institution going belly up. The other performance is that while were talking about subprime mortgages and housing, I reflect theres a growing recognition that this was not just a subprime mortgage problem, where there much more generalized asset bubble and credit bubble in the …