Who is ‘Doctor Disaster’ and why will his new prediction ‘make you shiver’? – The financial

Can you imagine that by your not at all positive predictions you earn the unenviable honor of being associated with disasters? This is the situation of the economist Nouriel Roubini, who warned this week that the United States is heading into a deep recession.

“There are many reasons why we are going to have a severe recession and a severe financial and debt crisis,” the also CEO of Roubini Macro Associates said in Bloomberg TV.

“The idea that this is going to be short and superficial is totally delusional,” he stressed.

How did Roubini ‘earn’ his nickname?

He did it in a rather memorable way: Roubini warned members of the International Monetary Fund of the disaster that was about to befall the United States and the world as a result of the 2008 financial crisis. The New York University professor’s notice was given two years earlier, in September 2006.

The academic listed the problems that the world would see in the following months: the bursting of a real estate bubble as never seen; drop in oil prices and a deep recession.

“I think we need a pretty strong drink after this,” the event’s moderator said after Roubini’s warning, according to an account from the New York Timeswhich indicates that there was no reason to fear an apocalyptic scenario since inflation and unemployment in the US were at low levels and the economy, although weak, continued to grow.

The crisis that would break out months later would prove the Master in International Business right and his ‘fame’ would be cemented.

Roubini is co-founder and chairman of Roubini Global Economics, an independent market strategy research firm, and his site ( is cited by various outlets including Bloomberg, The Economist, and The Wall Street Journal, among others.

The specialist was at some point linked to the US Government, since from 1998 to 2000 he worked as a senior economist for International Affairs at the White House Council of Economic Advisors and then as a senior adviser to the undersecretary for International Affairs at the Treasury Department. .

“The International Monetary Fund, the World Bank and many other leading public and private institutions have drawn on their experience as a consultant”, notes New York University.

Why the new ‘Doctor Disaster’ prediction is worrying

Among the reasons Roubini cited for a new recession were historically high debt ratios in the wake of the pandemic. He specifically mentioned the burden on advanced economies, which he warned continues to rise.

US debt has skyrocketed since the 2008 financial crisis, which was followed by low inflation or deflation due to a credit crunch and demand shock, it added.

“This time, we have negative stagflationary aggregate supply shocks and debt ratios that are historically high. In previous recessions, like the last two, we had massive monetary and fiscal easing. This time we are going into recession by tightening monetary policy. We have no fiscal space,” she warned.

With information from Bloomberg and the New York Times

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