Dr. Doom 2013 Prediction: Nouriel Roubini Projects Massive Economic Collapse
on Jul 23, 2012 07:09 PM EDT
"Dr. Doom" economist Nouriel Roubini has made a 2013 prediction previously that there is a "perfect storm" brewing for economic disaster, and he has reiterated his gloomy prediction in new updated comments recently.
Roubini famously predicted the country's previous economic disaster in 2008, and so his latest comments have held some weight in financial circles. Sparking flames to the economic pessimists Roubini has said that the 2013 economic collapse will be much worse than the one felt in 2008.
The economic expert is a professor at New York University's Stern School of Business. He has claimed that tax increases and spending cuts will be major factors in driving the economy into another recession in 2013. However, he has also predicted that external factors, such as Europe's debt crisis and China's financial issues, will add further gloom to the situation. Other factors he has pointed to are potential military interventions in Iran and other countries, which could drive the global economy into a point of crisis from which it would be extremely difficult to recover from.
Roubini has said, "There might be a weak rally because people are being cheered by more quantitative easing by (Chairman Ben) Bernanke and the Fed, but if the economy is weakening, that is going to put downward pressure on earnings growth."
The gloomy outlook projected by Roubini is not good news for much of the country, with millions still trying to recover from the 2008 crisis. However, if Roubini once again proves to be right, many people could find themselves in serious financial problems as their current financial affairs are much more precarious than they were prior to the 2008 collapse.
Some critics have accused Roubini of scaremongering, and believe Roubini's prediction is simply a worse case scenario that is highly unlikely to play out. Only time will tell whether Dr. Doom has got it right again.
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