Terrifying disaster scenarios according to crisis seer Roubini

Famous economist Nouriel Roubini, known as the prophet of the crisis, warned that the market has entered an “era of mega threats” and investors will lose trillions.

Wall Street economists are confident that 2024 will be a good year for the market. Many people think that the stock market will rise and that technology stocks will continue their performance. But thanks to his gloomy predictions, he is nicknamed ‘Dr. The famous economist Nouriel Roubini, who earned the title of “Apocalypse”, believes otherwise.

The famous economist, known for predicting the 2008 crisis, said in his latest analysis that losses for bondholders and investors will likely reach trillions over the next 10 years.

Roubini stated that markets should be concerned about the aging population, the threat of artificial intelligence and another global epidemic, as well as the ‘decline of globalization’: “The fact that not only the global economy but also the ‘ “People’s survival is at risk is increasingly accepted.”

‘THE PRIORITY THREAT MAY BE THE FED’S POLICIES’

One of Roubini’s main concerns is the possibility that the US Federal Reserve (Fed) will bow to pressure and compromise its 2 percent inflation target. While other economists believe that the Federal Reserve will begin to reduce interest rates after the pause period, Roubini believes that it is necessary to remain constant.

In an opinion piece published in Project Syndicate, Roubini stated that the Federal Reserve may have to “deviate from its objective” to avoid causing an economic slowdown and financial collapse. Roubini said: “The fact that they have already stopped interest rate increases despite very high core inflation indicates that they may have accepted an inflation figure above the target.”

DRAW ATTENTION TO GEOPOLITICAL TENSIONS

The famous economist also pointed out the fragile relations between the West and powers such as China, Russia and Iran. Roubini said the conflict between Russia and Ukraine could reach a point where NATO would have to intervene.

Roubini also claimed that the conflict in Gaza has led to further divisions, saying: “Israel’s military operation in Gaza risks fueling the flames of a broader regional conflict by causing a new rise in energy prices.”

“There will almost certainly be increased spending on weapons (including nuclear, cyber, biological and chemical) as a result of rearmament by the United States, Europe, NATO countries and almost everyone in the Middle East and Asia,” Roubini said.

Given the extraordinary circumstances of the pandemic, the market is operating in an “everything bubble,” Roubini said, noting that monetary and fiscal expansion has inflated valuations of almost everything.

LOSSES COULD REACH TENS OF TRILLIONS

He said this applies not only to speculative assets like cryptocurrencies, but also to government bonds, which cause investors to do a 180-degree turn after turning their backs on reliable assets.

“This bad situation will likely continue,” Roubini said, adding that “globally, losses for both bondholders and stock investors could reach tens of trillions of dollars over the next decade.”

‘IF THREATS CAN BE PREVENTED, THE FUTURE CAN BE BRIGHT’

Stating that there is some light at the end of the tunnel if humanity can overcome ‘mega threats’ such as artificial intelligence, geopolitical tensions and social change, Roubini wrote: “The future can be bright if we can avoid a dystopian scenario in where great threats feed off each other in destructive ways.

“Our first priority will be to survive the coming decades of instability and chaos,” Roubini said.