Confidence is in short supply these days. But Tyler Cowan at Marginal Revolution points to an article that shows there is an unusual source of long-term optimism in the U.S. economy: Nouriel Roubini of New York University….

… who has a reputation as the most pessimistic economist in academe. He deserves it. His most recent paper, published last week, is entitled: “Can the Fed and Policy Makers Avoid a Systemic Financial Meltdown? Most Likely Not.” Nobody is more aware of the gravity of the financial situation, and nobody has done more to point out the risks of a systemic crisis. So how are Roubini’s own funds invested? They are 100 per cent in equities. In the long run stocks do best and he is not yet close to retirement, so he keeps putting more money into index funds each month. Fully aware of the gravity of the financial situation, he is also aware of the futility of trying to take action or to time the market. Those tempted to make the investing equivalent of a goalkeeper’s despairing dive should take note.