Economist Nouriel Roubini : The crisis has come once again when the economy of the world including the superpower America has collapsed due to Corona epidemic. Economist Nouriel Roubini, who correctly predicted the financial crisis of 2008, has predicted a severe recession from the end of 2022 to the end of 2023, including the United States. He also said that this recession will be the longest and worst. The S&P 500 will also fall sharply. Even in a simple recession, the S&P 500 could fall 30 percent, Roubini, president and CEO of Roubini Macro Associates, said in an interview Monday. He has also warned that the stock may fall by 40 percent.
On what basis was such a prediction made?
Nouriel Roubini made a very accurate prediction of the economic recession in 2007-2008. He then came into the limelight and became known as Dr. Doom. Those who expect a slight slowdown in the U.S. should consider the high debt levels of corporations and governments, he said. Many zombie institutions, zombie households, corporations, banks, shadow banks and zombie countries suffocate as rates and service costs rise. So we’ll see who can get away with it, he added.
Big rise in interest rates expected
Rubini said it is for the US to reach 2 percent inflation without a hard landing "mission impossible" will be They expect a rise of 75 basis points in the current meeting and 50 basis points in November and December. This would move the fed funds rate between 4 percent and 4.25 percent at the end of the year. However, continued rising inflation, especially in wages and services, means the Fed will have no choice but to raise interest rates substantially. He said rates are moving towards 5 percent. The supply crisis caused by the corona pandemic, the Russia-Ukraine conflict and China’s zero-tolerance COVID policy will increase costs and reduce economic growth.
Nuriel Roubini called on American businessmen and the government to act quickly in 2007, but they ignored his calls. Because of which the whole world is still suffering its punishment. The U.S. housing industry was in turmoil in 2008, and now, he said, those expecting a shallow U.S. recession should look to large amounts of corporate and government debt. As rates rise, so does the cost of loan repayment.
He further said, "Many organizations including banks and corporates are going to be hit by this financial crisis, the country’s banks are going to get caught up in the financial crisis, which they will have to pay the price for. The housing sector will be completely disrupted and we will see who swims out of that financial crisis.
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