Economist Nouriel Roubini predicts another recession. Here are details

Noted Economist Nouriel Roubini, who predicted the financial crisis in 2008, now feels the US and the rest of the world is about to face an ugly and long recession. Roubini said the S&P 500 could fall by 30 per cent in a normal recession and 40 per cent in a brutal recession.

Roubini (Dr. Doom) earned his nickname for correctly predicting the 2007-2008 crash and saying people should expect huge debt ratios for governments and corporations. He said many zombie countries, shadow banks, banks, corporates, zombie households, and zombie institutions would die. Roubini warns that recession will drag the global markets down because of debt levels worldwide, and it will be impossible for the Federal Reserve to keep inflation down to 2 per cent.



Roubini predicts a 50 basis point increase in November and December and a 75 basis point increase in the current meeting. He believes there will be more hikes because of inflation in the service sector and wages. He believes China's zero COVID tolerance, the Russia-Ukraine conflict, and pandemic supply shocks will result in lower growth of the economy and higher costs. Roubini expects private equity and credit funds, hedge funds, shadow banks, and shadow corporations to implode. Banks and households took the hardest hit in the 2007-2008 crisis. He expects the recession to last for the whole of 2023 and predicts it to be long and ugly.

FAQs

1. When does Roubini expect the next recession to start?
   Roubini expects the next recession to hit in late 2022 and last for all of 2023.
2. Who is Nouriel Roubini?
   Nouriel Roubini is an economist who correctly predicted the 2007-2008 crisis.