Nouriel Roubini, the famed economist whose dire predictions of the 2008 financial crash ultimately came true, is advising that the U.S. economy is about to get hit with a “severe” recession.
Roubini, who has also been dubbed by some as “Dr. Doom” for his economic predictions, told Bloomberg that any hopes of a mild recession were “delusional” and that this downturn might be “worse” than the ’70s.
“There are many reasons why we are going to have a severe recession and a severe debt and financial crisis,” Roubini said on Bloomberg TV Monday. “The idea that this is going to be short and shallow is totally delusional.”
The Iranian-American economist points to high debt ratios following the pandemic, stagflation, and extraordinarily high national debt.
“So it could be worse than ‘70s and post-GFC (Global Financial Crisis of 2007-2008),” he said.
Economist Nouriel Roubini on shallow recession calls: “There are many reasons why we are going to have a severe recession and a severe debt and financial crisis. The idea that this is going to be short and shallow is totally delusional” https://t.co/V8G14mlEhH pic.twitter.com/ngEXXQbZmz
— Bloomberg TV (@BloombergTV) July 25, 2022
RELATED: Even CNN’s Chris Cillizza Is Mocking the White House For Recession Spin: ‘I Was Laughing to Myself’
Famed Economist Nouriel Roubini: US Headed For Severe Recession
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Nouriel Roubini’s gloomy prediction of a severe recession is certainly not welcome news for President Biden who recently told reporters that “We’re not going to be in a recession in my view.”
The White House even went so far as to play semantics with traditional methods of defining what a recession is as a means to blunt potentially troublesome economic news later this week.
NOW – Biden: “We’re not going into a recession.” pic.twitter.com/KMCKN1gf7g
— Disclose.tv (@disclosetv) July 25, 2022
If Roubini feels those who are hoping for a simple ‘mild recession’ are “delusional,” what must he think about a President who consistently tells the American people that a recession is “not inevitable”?
On Tuesday’s “National Report,” @WarrenDavidson blasts President Biden for saying there’s ‘nothing inevitable about a recession.’
“All of the policies he’s pushing are making things worse.”
MORE: https://t.co/GAKyXFIiAM pic.twitter.com/zgOP8T6j7y
— Newsmax (@newsmax) June 21, 2022
“First of all, it’s not inevitable,” Biden said just weeks ago. “Secondly, we’re in a stronger position than any nation in the world to overcome this inflation.”
At the other end of the spectrum, you have President Biden who has suggested Americans being subjected to constant negative economic news is causing them “mental health” problems.
“People are really, really down,” said Biden. “Their need for mental health in America has skyrocketed because people have seen everything upset. Everything they’ve counted on upset.”
Refresh my memory, who was it that promised to solve all their economic woes? To end the pandemic? To, as Pedro from Napoleon Dynamite might say, make your wildest dreams come true?
The ‘delusional’ guy sitting in the Oval Office on occasion.
Townhall’s @guypbenson on the Biden Administration’s recession denial:
“If you’re frantically redefining basic terms, as part of a spin to try to deflect away from painful realities, you’re really losing.”pic.twitter.com/pi0GzxwT1H
— Townhall.com (@townhallcom) July 25, 2022
RELATED: Survey: Nearly 50% of Economists Believe A Recession Is Coming
An Economic Hurricane is Coming
Roubini’s prediction of a severe recession echoes concerns expressed by Wall Street titan and CEO of JPMorgan Chase, Jamie Dimon, who is warning of a looming economic “hurricane.”
“I said there were storm clouds. But I’m going to change it. It’s a hurricane,” Dimon warned analysts and investors during a financial conference hosted by AllianceBernstein Holdings in June.
“Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it. That hurricane is right out there down the road coming our way,” he added. “We don’t know if it’s a minor one or Superstorm Sandy.”
JPMorgan CEO Jamie Dimon says there’s a “hurricane” coming for the US economy and that “you better brace yourself” https://t.co/InCDVUx7Cz pic.twitter.com/LWFzjhxWR1
— Bloomberg (@business) June 1, 2022
A recent Bloomberg survey of economists indicates nearly 50% believe the United States economy is headed toward a recession within the next year, while a separate poll by Magnify Money shows 70% of Americans are predicting a recession is coming.
The International Monetary Fund on Tuesday downgraded their economic outlook for 2022 and 2023, warning the world economy faces a “gloomy and more uncertain” future that could include a recession.
“The outlook has darkened significantly since April,” Pierre-Olivier Gourinchas, the IMF’s chief economist, said. “The world may soon be teetering on the edge of a global recession, only two years after the last one.”