- Hopes for a mild recession are "delusional," said
Nouriel Roubini , the economist who called the 2008 financial crisis. - He said debt ratios are historically high, while bailouts during the pandemic have resulted in "zombie corporations."
Recession indicators are ringing and key commodities have plunged into a bear market, signaling a downturn may be on the horizon. And Nouriel Roubini dismissed hopes that an incoming recession will be shallow.
The famed economist, who called the 2008 financial crash, told Bloomberg that the economy is headed for a severe recession as well as a severe debt and financial crisis.
Roubini, also known as "Dr. Doom," said debt ratios are historically high at 420% for advanced economies and climbing, while bailouts during the pandemic have resulted in "zombie corporations" that put the economy at risk.
In contrast, the
"This idea that it's going to be short and shallow, it's totally delusional," Roubini said.
His warning goes against other predictions on Wall Street for a mild recession, including those from Goldman Sachs, Morgan Stanley, Wells Fargo, Pimco, Nomura, and BlackRock's Larry Fink.