Roubini is worried that an inflation-driven recession will hit the US economy in a big way.

"It's not going to be a short and shallow recession, it's going to be severe, long and ugly, and the stock market could crash 40% in the event of a hard economic landing," the so-called Dr.

Roubini thinks the fed funds rate will be raised to at least 5% due to persistently high inflation.

At least one part of Roubini's assessment is not in line with the thesis that deflation is going to take hold in the US.

Roubini forecasting intractable 1970's-style inflation will be blindsided by deflation.

She said that the tightening of monetary and fiscal policies have caused some commodity prices to fall.

It would be good for stock investors to see deflation as it would mark an end to high inflation and give the Fed more flexibility in its interest rate trajectory. Too much deflation can signal demand destruction.

Recent data on gasoline demand is reason to think deflation is imminent.

The total number of miles traveled by vehicles in the US decreased in July.

The average price for a gallon of gas in the US went up to above $5. Wood believes that consumers have the ability to cut back on spending in response to high prices. Gas prices have fallen since the summer.

Both Roubini and Wood agree that the US will enter an economic recession if it hasn't already done so.

The earnings results show that we are in a recession. I think that this is an inventory-led recession. Wood said in August that advertisers were cutting back.