Roubini expects a “long and ugly” recession throughout 2023 that will sink the SP500 up to 40%
Economist Nouriel Roubini, known as “Doctor Doom” after predicting the 2008 financial crisis, has released his latest prediction. He now foresees a “long and ugly” recession starting in late 2022 and lasting throughout 2023, spreading from the US to the entire world. “Even in a simple recession, the S&P 500 can drop 30%,” the chairman and CEO of Roubini Macro Associates said in an interview. In “a real hard landing”, as he expects, the largest US index could fall as much as 40%.
Roubini believes that those expecting a shallow US recession should be looking at the huge corporate and government debt ratios. As rates rise and the cost of servicing debt grows, “a lot of zombie institutions, zombie households, corporations, banks, shadow banks and zombie countries are going to go under,” he said. “And then we’ll see who’s swimming naked.”