Synopsis

The economist Nouriel Roubini, who foresaw the 2008 financial crisis, now believes that the United States and the rest of the globe are set to experience an unpleasant and protracted recession. A recession, according to Roubini, will cause the global markets to decline due to high levels of debt, making it difficult for the Federal Reserve to maintain 2 per cent inflation.

Noted Economist Nouriel Roubini, who predicted the financial crisis in 2008, now feels the US and the rest of the world is about to face an ugly and long recession. Roubini said the S&P 500 could fall by 30 per cent in a normal recession and 40 per cent in a brutal recession.

Roubini (Dr. Doom) earned his nickname for correctly predicting the 2007-2008 crash and saying people should expect huge debt ratios for governments and corporations. He said many zombie countries, shadow banks, banks, corporates, zombie households, and zombie institutions would die. Roubini warns that recession will drag the global markets down because of debt levels worldwide, and it will be impossible for the Federal Reserve to keep inflation down to 2 per cent.