Roubini criticizes German austerity, says they need to spend more

By the time they wake up (it will be the same story in the UK) the moment will be lost. The strict austerity in Germany isn't necessary today despite what the right believes. Spain, Greece and Portugal may be a different story, but in this case, the belt tightening is going to be costly in the long term.

"The German economy is nowhere near pre-crisis levels yet," Roubini told Capital on Monday. "The current growth rate may look good on paper, but that is mainly a statistical effect."

Germany can currently borrow money cheaper than ever and German Chancellor Angela Merkel should take advantage of this and only start consolidating once the rest of Europe is in better shape, Roubini said.

The switch to “savings mode” at that point would still slow growth, but at least it would prevent “an emergency stop without a safety belt,” he said.

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White House warns banks on foreclosures and the law

Better late than never, but still very much appreciated. The banks listen to little other than an iron fist so hopefully the White House is ready to carry through on their talk.

Federal law enforcement officials are investigating possible criminal violations in connection with the national foreclosure crisis, examining whether financial firms broke federal laws when they filed fraudulent court documents to seize people's homes, according to people familiar with the matter.

The Obama administration's Financial Fraud Enforcement Task Force is in the early stages of an investigation into whether banks and other companies that submitted flawed paperwork in state foreclosure proceedings may also have misled federal housing agencies, which now own or insure a majority of home loans, according to these sources.

The task force, which includes investigators from the Justice Department, Department of Housing and Urban Development and other agencies, is also looking into whether the submission of flawed paperwork during the foreclosure process violated mail or wire fraud laws. Financial fraud cases often involve these statutes.

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