The economist known as "Dr. Doom" thinks that the US is about to go into a recession.
Roubini said in a column that the US had " ample reason to worry" about an impending recession as the economy was currently showing characteristics of both the 1970s and 2008 recessions.
Roubini predicted that the Fed would eventually accept high inflation. The New York Fed puts the odds of a soft landing for the economy at just 10%, and he warns that the combined pressures of inflation and debt could push the stock market down by 50%. The S&P has already experienced its worst half year in over forty years.
Roubini said that a bounce like the one in the last two weeks should be seen as a dead-cat bounce.
Roubini wrote that the next crisis will not be the same as the previous ones. We are heading for a combination of 1970s-style stagflation and 2008-style debt crises because of the supply shocks we are facing today.
The economist suggests that the financial crisis has been a source of anxiety for economists and central bankers in the past year. The New York Fed found that the global supply chain pressure index increased in April. The hike in prices for the month of May was the highest in 33 years.
The New York Times referred to Roubini as "Permabear" in 2008 because of his reputation for being extremely bearish in the economy. The titles aren't without merit, as Roubini was one of the first to warn of the impending Great Recession in the mid-2000s.
He warned that there wasn't a real answer to the problem. Things will be worse before they improve.
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