Economist Who Accurately Predicted 2008 Crash Warns Of ‘Hard Landing’ Recession; Calls Predictions For Shallow Recession ‘Delusional

Economist Nouriel Roubini is predicting a deep recession for the U.S..

Roubini, who accurately predicted the 2008 economic crash, is now warning that the coming crash is likely going to be much worse than what we saw in 2008 and called predictions that we are only going into a shallow recession “delusional”.

“There are many reasons why we are going to have a severe recession and a severe debt and financial crisis,” Roubini said on Bloomberg TV last week. “The idea that this is going to be short and shallow is totally delusional.” Roubini warned that stocks could plunge as much as 50% during this next crash.

The man many refer to as “Dr. Doom” warned that “The world economy is undergoing a radical regime shift” and that the world is now going to be entering an era of stagflation. Roubini warned that this collapse is going to be much worse because the world is in significantly more debt than it was the last time we saw inflation at rates that we are currently seeing.

“Central banks are thus locked in a ‘debt trap’: any attempt to normalize monetary policy will cause debt-servicing burdens to spike, leading to massive insolvencies, cascading financial crises, and fallout in the real economy,” he said.

Roubini’s warning for investors is that “During the Great Stagflation, both components of any traditional asset portfolio — long-term bonds and US and global equities — will suffer, potentially incurring massive losses”.

He also warned that “Markets are expecting a pivot, and the Fed cutting next year,” and “To me [that] sounds delusional.”

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