Economist Nouriel Roubini, better known as “Doctor Doom” – the prophet of torment or Dr. Apocalypse’ – Having predicted the housing crash of 2007 and the subsequent financial crisis of 2008, he was deeply pessimistic about the global economy and the performance of Wall Street’s main stock index.
In an interview with Bloomberg, a professor of economics at New York University’s Stern School of Business predicted a “long, ugly” recession in the US and around the world at the end of this year – which could continue throughout 2023. To add, he expects a strong correction from the S&P 500 , which can be up to 40%
CEO Roubini Macro Associates warned that “even in a small recession, the S&P 500 could drop 30%.” In the case of a “real approximate drop”, which Roubini considers likely, the index could drop by 40%.
Nouriel Roubini – who earned the title of fortune-teller for the worst economic and financial crisis since the Great Depression after warning in 2005 that a speculative boom in the US real estate market could trigger an economic crisis – says anyone anticipating a shallow crisis should look at the ratios Huge debts to companies and governments.
He points out that as interest rates rise and debt servicing costs rise, “many zombie institutions, zombie families, corporations, banks, fictitious banking, and dark countries will succumb.” At that time, he stresses, “we’ll see who’s swimming naked.”
And what does this mean? Only when the tide is low do we realize who was swimming naked. This means that things can look very good and somewhat beautiful, but if a company is – for example – over-leveraged waiting for a wave to arrive and instead, it will be completely unraveled.
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