Economist Nouriel Roubini has made yet another damning prediction about an impending “severe, long and ugly” downturn at the end of this year.
He was dubbed ‘Dr Doom’ for correctly predicting the Great Recession of 2008 and acclaimed economist Nouriel Roubini has made yet another damning prediction about an impending “long and ugly” downturn at the end of this year which could engulf all of 2023 too.
The US stock market index S&P 500 could fall by 30 percent and the fall could be as hard as 40 percent, Roubini, who is chairman and CEO of Roubini Macro Associates, said in a recent interview with Bloomberg.
In his alarming economic forecast, Roubini said that “many zombie institutions, zombie households, corporates, banks, shadow banks and zombie countries are going to die” with rising rates and increase in debt servicing costs.
He added that the US Central Banking System will “probably have no choice” but to hike more, and lending rates will further go up.
Lower economic growth, higher costs and rising unemployment will be seen due to hits from the Covid-19 pandemic, Russia-Ukraine conflict and the zero Covid tolerance policy of China, he said.
Furthermore, the economist doesn’t believe there will be a quick cure to the financial meltdown as he believes that the debt-ridden governments are “running out of fiscal bullets,” Bloomberg reported.
This will bring stagflation akin to the 1970s in the US and a debt crisis like the global meltdown.
“It’s not going to be a short and shallow recession, it’s going to be severe, long and ugly,” he was quoted as saying.
He sees the global downturn to last through the next year. While in 2008, it was banks and households that were at the worst receiving end, he says it will be “corporations, and shadow banks, such as hedge funds, private equity and credit funds” that will “implode” this time.
For investors, Roubini advises to be heavy on cash and low on equities, it was reported.
READ | Meta, Google reportedly putting workers on ‘notice period’
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "It’s coming! ‘Dr Doom’ Nouriel Roubini warns of ‘severe, long and ugly’ recession in 2022-23")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}