Financial expert Nouriel Roubini, who earned the nickname “Dr. Doom” for his accurate prediction of the 2008 global financial crisis, doubled down on his world-changing recession claim on a podcast released Wednesday.
Roubini told the hosts of the “Odd Lots” podcast that the world is headed for a period of stagflation worse than the 1970s as banks struggle to manage inflation. He cited the plummeting stock market, pressure on private equity firms, the cooling of the real estate market, and impending credit crisis as the reasons for his prediction, echoing similar sentiments to previous interviews and comments from his peers.
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“Even high-grade is at interest rates like you’ve never seen in years,” Roubini stated. “And this is just the beginning of that pain. Wait until it’s real pain. And then you have a major financial institution that may crack globally, not in the US maybe now, but certainly internationally. There are a couple of firms that are huge and systemic. They can go under. You might have another Lehman effect, then the Fed will have to wimp out. You’ll have a severe recession and you’ll have a financial market shock. They’re going to wimp out for sure.”
His predictions, which have largely been completely accurate throughout his career, fly in the face of former Fed Chairman Ben Bernanke’s forecast. Bernanke is best known as the guy who got everything wrong during the 2008 global financial crisis but was somehow rewarded with a Nobel Prize for his awful job. He’s said there won’t be stagflation, suggesting that there absolutely will be. (RELATED: Read This Barclays Financial Note And Decide Whether God Hates Joe Biden, Or He’s Just Getting Tired Of Humanity)
Stagflation isn’t the only major concern, Roubini argued. “We’re already in a real time bomb in terms of social and political pressures,” Roubini continued. “And an economic crisis and a financial crisis and a geopolitical crisis is gonna make these things much worse.”