Economist Nouriel “Dr. Doom” Roubini predicted a “long and ugly” recession at the end of 2022 during an interview Monday.
Roubini’s accuracy in predicting the 2008 financial crisis earned him the nickname “Dr. Doom,” and he’s now warning of a lengthy and difficult recession at the end of 2022 that could last the length of 2023, according to Bloomberg. He also believes that there will be a sharp correction in the S&P 500, stating that “even in a plain vanilla recession, the S&P 500 can fall by 30%.”
Roubini anticipates 1970s stagflation conditions to return, coupled with similarly enormous debt distress seen in the global financial crisis, Bloomberg reported. “It’s not going to be a short and shallow recession, it’s going to be severe, long and ugly,” he said, according to the outlet.
“Many zombie institutions, zombie households, corporates, banks, shadow banks and zombie countries are going to die,” as a result of rate rises and debt service cost increases,” he reportedly said. “So we’ll see who’s swimming naked.”
‘Put On Your Seat Belts On’: BlackRock President Warns Of Massive Shortages Due To Inflation https://t.co/ZbFkqFkrHm
— Daily Caller (@DailyCaller) March 30, 2022
He believes that corporations and shallow banks, like hedge funds, credit funds, and private equity will “implode,” Bloomberg reported. Roubini’s predictions could see the end of globalization, with manufacturing relocating to Europe and the U.S., migration restrictions, significant strife between the U.S. and China, as well as additional pandemics, the outlet noted.
His concerns are mirrored by other financial and economic experts, such as Michael Burry, who believes we’re headed for the “mother of all crashes.” (RELATED: Bank Of America Institutes New Explicitly Racist Mortgage Program)
Roubini has previously stated that getting to a 2% inflation rate is going to be the Federal Reserve’s “mission impossible,” the outlet continued. In the next month, he’s expecting a 75 basis point hike, with two 50 basis point hikes in November and December of 2022, Bloomberg reported.