‘Dr. Doom’ Nouriel Roubini warns the next decade could bring ‘massive insolvencies and cascading financial crises’

194Will Daniel

Nouriel Roubini has a reputation on Wall Street as a bit of a pessimist.

Okay, maybe more than a bit.

The 64-year-old NYU economics professor and CEO of Roubini Macro Associates has shared so many bleak predictions over the years that he has earned the moniker Dr. Doom.

But many younger market watchers forget that Roubini actually gave himself the nickname in the mid-2000s when he was attempting to warn the world of an impending financial crisis.

In 2006, when investment banks were still routinely making bullish predictions about the U.S. economy, Roubini was telling anyone who would listen that a U.S. housing bust was on the way.

His bearish views were featured in an International Monetary Fund paper that year, alongside other economists who made far more positive forecasts. The paper recounts how Roubini told a group of 300 IMF staffers at a meeting in Washington D.C. that a U.S. housing crash would ultimately cause a deep global recession.

“When the United States sneezes, the rest of the world gets a cold,” he said, arguing that even Federal Reserve interest rate cuts wouldn’t save the day.

Of course, Roubini was right. The U.S. housing market began to unravel in 2007, ultimately sparking the Great Financial Crisis a year later, and the Fed wasn’t able to rescue markets.

So it might make sense to pay attention to Roubini’s warnings of impending economic doom this time around, even if they can get a bit repetitive.

And they certainly have been repetitive. Roubini has previously argued that the U.S. economy will fall into a deep recession by the end of this year, going so far as to call those who believe that a “soft landing” is still possible “delusional.”

Now, the economist is claiming that we’re headed for a “stagflationary crisis unlike anything we’ve ever seen.”

In a Time op-ed published on Thursday, Roubini said that a toxic economic combination of low growth and high inflation will lead to “massive insolvencies and cascading financial crises” worldwide in the coming years……Story continues

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