roubini. professor of economics and international business at nyu stern school of business. then we'll hear from mr. peter van valkenburg, director of research at, research and advocacy group coin center. dr. roubini, you may proceed. before you do as i always do our mind you to please try to pay attention to the clock and keep your initial remarks to five minutes. you will have opportunities to respond an ad during questions, and a remind my colleagues of the same limitations that they have on their question time. with that, dr. roubini, please proceed. >> thank you. chairman crapo, ranking member brown and members of the committee, thank you for the opportunity to test that the topic of crypto currency and blockchain. my name is nouriel roubini and i'm a press of economics at new york university. in summary, my view on this is as follows. first, crypto is moderate or father of all bubbles, but that is finally going to bust that you picked second is a most overhyped technology ever and it is

roubini. i'd like to focus on those. >> you're right, senator jones. criminals are usually the earliest adopters of new technologies. i think if criminals aren't using your technology, your technology is not worth anything. >> good point. >> so, you know, stock car racing and souped up car cars, ultimately nascar, was a phenomenon born out of bootlegers outrunning the cops during prohibition. ultimately something not so bad. but moments of disruption are things we need to worry about. with bitcoin, i think it is a positive story, especially here in the u.s. as i said, our financial surveillance regulator was fast out of the gate globally. first out of the gate to say that cryptocurrency exchanges need to know their customers and do suspicious activity reporting. when you're getting on the bitcoin network, your name is going to be taken down if you're doing it at a u.s. exchange. now, what about transactions within the bitcoin network that aren't in an exchange? well, they are public, on the pu

joe: i've been really entertained by an aerial roubini's tirades in the hearing -- by nouriel roubini'se hearing and on twitter the last few days. he is going to town. the funny thing is, he sounds like a really hard-core bitcoin fan. he uses a pejorative that we can't say on-air. he slams ethereum. slammed blockchain technology. it's almost like he says all the things that the really hard-core bitcoin tribe likes to say, except he doesn't say anything good about bitcoin. i've been amused at how much overlap there is between him and the most hard-core faction of the bitcoin world -- critical -- crypto world. caroline: interestingly, it's not correlated. joe: cryptocurrencies are getting clobbered again today. 10% hard -- crypto falls frequently. who knows? the way i think about correlation is, in a panic, what do you do? you raise money in the currency that your bills are denominated in. i need some dollars. no one has bills denominated in cryptocurrency that i have ever heard of. caroline: i just got pitched by a company saying it has loads of future rentals. joe: by and large, crypto

of bros and roubini associates mr rose. just before the break we were discussing this very gloomy scenario that you painted out and i heard you say that if. indeed happens the political implications in the two thousand and twenty electoral year could be massive especially taking into account the character of the current american president what is your worst fear is not just. is not just in the u.s. in a number of countries political developments have shown a very different direction from the past now that i got in the u.s. we had one of the there my be. two potential severe downturn is the possibility that presidents facing potential. economic crisis tend to turn that instruments to gather. consensus around them that has been has happened a number of times in the past and by other instruments i think you mean the some sort of foreign policy crisis and in your article specifically you mention iran as a as a potential target right exactly because what i was about to say is that presidents can work effectively all on trade mig

nouriel roubini.s called by "foreign policy magazine" one of the top 100 global thinkers. he predicted the 2007-2008 housing collapse. you have concerns about where we are on the horizon. but characterize where we are in terms of the economy. >> the economy in the u.s. and globally is doing well. next year the will be slightly less than 2%. but i expect a slowdown and likely a recession by 2020. the next two years things are fine, but then we'll have a significant slowdown in growth. maria: why? where -- how do you get there for a slowdown and recession in 2. > in -- in 2020. the third quarter looks like around 3%. the economy is growing around 3%. this year and next year, 1% of gdp. consumer confidence is better and business confidence is better. but most of of the movement from 2 to 3. the way they designed it to 018-2019. and it's a cliff. the stimulus goes away and the beginning in 2020. and it will get bigger and bigger by 2025. the 3% pushes you below 2%. around 2.pay the, and 1.pay the by 2020.

at rose and roubini associates mr rose it's good to talk to you thank you very much for your time thank you for inviting me now over the last couple of weeks we've heard a number of prominent economists warn that the global economic growth may be slowing down but i think you've been the most passive mystic of all predicting a new global crisis around two thousand and twenty doc may be similar in scale or perhaps even wars than the one we saw in two thousand and eight is that still a possibility or already a certainty no of course is probabilistic assertion in the sense that we look at various scenarios for the ward economy and we have touch from the bigger twos to do what we do. compared to other economists out there and these are houses sense we patch a high probability to such an event to occur around forty five percent and this is based on an non but of forces that we see already at play and we can think and we think that over the next couple of years would have gathered starting in my actually quite too cozy down to the more severe than what we have seen potential in two thousand an

at rose and roubini associates mr rose it's good to talk to you thank you very much for your time thank you for inviting me now over the last couple of weeks we've heard a number of prominent economists warn that the global economic growth may be slowing down but i think you've been the most passive mystic of all predicting a new global crisis around two thousand and twenty doc may be similar in scale or perhaps even wars than they want to be saw in two thousand and eight is that still a possibility or already.

of throws and roubini associates mr rose it's good to talk to you thank you very much for your time thank you for inviting me now over the last couple of weeks.