"Dr. Doom" Roubini: America's Troubles Beyond 1970s, Mild Recession Wishful Thinking

Nouriel Roubini, a New York University economist known as the "Dr. Doom," has stated that with rising interest rates and the burden of high debt, the U.S. economy is heading towards a severe recession. He believes those who think the economy is only experiencing a mild downturn are simply "delusional."

Economist Nouriel Roubini, known as the "Dr. Doom," has warned that the US economy is heading towards a severe recession due to rising interest rates and the heavy burden of debt. He stated that those who believe the economy is only experiencing a mild downturn are "delusional."

In an interview with Bloomberg, he pointed out that the US debt ratio is at a historical high of 420% and still rising. The pandemic relief measures have led to the existence of "zombie companies," which is a significant factor pushing the economy into crisis.

Roubini compared the current situation to the 1970s, where stagflation was accompanied by low debt levels. However, after the 2008 financial crisis, due to credit tightening and demand shocks, there was low inflation or deflation, leading to a rapid increase in national debt.

Therefore, Roubini believes that the US is facing stagflation and a severe debt crisis this time, which could be worse than the 1970s and the global financial crisis.

His warning contrasts with the more moderate predictions from Wall Street. Institutions predicting only a mild recession include Goldman Sachs, Morgan Stanley, Wells Fargo, Pacific Investment Management Company, Nomura Securities, and BlackRock's Larry Fink.

The market expects the Fed to raise interest rates by 75 basis points this week and possibly continue to raise rates in the coming months.

This article is authorized to be reprinted from Horizon News Network