He foresaw the financial crash of 2008. Warns Of Long, Ugly Recession Currently

Nouriel Roubini predicts a long and ugly recession in the U.S. and globally .

Nouriel Roubini, an economist who correctly predicted the 2008 financial crisis, expects a long and ugly recession in the United States and globally, which could reach the end of 2022, as well as a sharp increase in the S&P 500, according to Roubini, chairman and CEO of Roubini Macro Associates, in an interview on Monday.It could decline by 40% in a hard landing, according to Roubini, whose prescience on the housing bubble crash of 2007 to 2008 earned him the name DrDoom.According to Roubini, those who expect a shallow US recession should be monitoring corporate debt levels.Many zombie institutions, zombie families, companies, insurers, and zombie countries are going to die as rates rise and debt servicing costs rise, he said.

At the most recent meeting, he expects a 75 basis point rate increase, as well as 50 basis points in both November and December.The Fed funds rate would be between 4% and 4.25 percent by the end of the year, according to Davidson.However, persistent inflation, especially in the labour and service sectors, would mean the Fed would probably have no choice but to raise more, with funds rates approaching 5 percent.Negative supply shocks from the pandemic, Russia-Ukraine conflict, and China's zero Covid tolerance program will result in higher costs and lower economic growth.Roubini says that the Fed's future growth recession target-a protracted cycle of meager growth and rising unemployment to stem inflation-would be difficult because governments with too much debt are running out of fiscal bullets.

The hardest hit areas and banks were affected by the 2008 crisis.This time around, he said, businesses and shadow banks, such as hedge funds, private equity, and credit funds, will die.In Roubin's latest book, Megathreats, he identifies 11 medium-term supply disruptions that can deter expansion by raising the cost of production.These include deglobalization and protectionism, extraction of raw materials from China and Asia to Europe and the United States, aging of populations in advanced economies and emerging markets, migration barriers, decoupling between the US and China, global climate change, and repeat pandemics, he said.

In fixed income, he advises against long-term treasuries and inflation index bonds like TIPS, which provide inflation protection.