Nouriel Roubini, “Dr. Doom,” expects a severe, long, and ugly recession

© Reuters. Nouriel Roubini, “Dr. Doom,” Expect a Deep, Long, and Ugly Recession – Bloomberg

By Sam Boughedda

Nouriel Roubini, an economist who predicted the 2008 financial crisis, said he believes there is a “long and ugly” recession hitting both the United States and globally by the end of 2022, with likely to continue until 2023.

In an interview reported by Bloomberg, Roubini said it could cause a correction as strong as 30%, “even in a mere vanilla recession.” However, on expectations of a “real hard landing”, the S&P 500 could drop 40%.

The president and chief executive officer of Roubini Macro Associates, nicknamed Dr Doom after his 2008 prediction, warned that anyone expecting a shallow US recession should check debt ratios. by corporations and governments.

Roubini added that as rates rise and repayment costs rise, “many zombie organizations, zombie households, businesses, banks, shadow banks, and zombie nations will die.” Meanwhile, he believes hitting 2% will be a “mission impossible” for the Federal Reserve and he expects the current meeting and a 50 percentage point increase in November. and December.

Roubini believes inflationary That means the Fed may have no choice but to keep raising rates, and when the world is in recession, he doesn’t believe fiscal stimulus will help as governments with so much debt are “drying up”. exhausted financial resources”, leading to stagnant inflation.

“It’s not going to be a short and shallow recession, it’s going to be severe, long, and ugly,” Roubini was quoted as saying by Bloomberg.

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