Every time markets fall, Trump “shucks”. “Countries are punished”

Nan intervention at the opening ceremony of the 19th edition of the QSP Summit, in Porto, the economist highlighted the power of the markets, which punish political decision-makers for those who consider to be less positive measures.

The economist says that, therefore, is more “optimist”. “If something is wrong the markets punish,” he said.

According to Roubini, every time the markets fall as a result of a measure, Trump “accurs” and retreats.

“The discipline of the market will restrict bad policies,” he said, pointing out that if the market thinks that “politics is stupid” forces corrections, giving the example of emerging markets, but also advanced economies.

According to Roubini, the reason British former Prime Minister Liz Truss lasted only 44 days in office was because the markets did not like the policies she implemented.

And even the US is subject to the “goodness of strangers”, which are the markets.

In statements outside the conference, Roubini admitted, however, that “not always the market is right”.

“ Millions of domestic investors or other foreign economies make decisions about whether a country has the right regulation, the right structural policies, the right governance, the right political stability, the ability to reduce excessive bureaucracy,” pointing out that this assessment decides its investments.

“ And if some countries make very wrong policies, they are punished”, indicated, in areas such as sovereign debt, currency, capital markets, among other factors.

“ I am not saying that investors are always perfect, but they almost always see the world and try to reward countries, companies and sectors that are doing the right thing and try to punish those who are not,” he said.

“ Punishment can be brutal but sometimes it forces political changes, macro adjustments, structural reforms that are necessary”, he said.