Famous economist Nouriel Roubini said that the market has entered the “era of major threats”, investors will lose trillions of dollars in the next 10 years, and people’s survival is also at risk. Here are the Doomsday scenarios for the Prophet of Crisis…
Renowned economist Nouriel Roubini, known as the Prophet of Crisis, warned that the market had entered an “era of mega threats” and that investors would lose trillions.
Wall Street economists are confident that 2024 will be a good year for the market. Many people believe that the stock market will rise and that technology stocks will continue to perform. But thanks to his grim predictions, he is nicknamed “The Doctor.” The famous economist Nouriel Roubini, who earned the nickname “The Apocalypse,” has the opposite opinion.
The famous economist, known for predicting the 2008 crisis, said in his latest analysis that the losses of bondholders and investors are likely to reach trillions over the next ten years.
Noting that markets should be concerned about an aging population, the threat of artificial intelligence and another global pandemic, as well as “declining globalization,” Roubini said: “It is the fact that not only the global economy, but also the ‘survival of people’ is at risk.” Increasingly acceptable.”
“Priority threat may be Fed policies.”
Among Roubini’s main concerns is the possibility that the US Federal Reserve will succumb to pressure and compromise its 2% inflation target. While other economists believe that the Fed will start lowering interest rates after the pause, Roubini believes it is necessary for them to remain steady.
In an opinion piece published in Project Syndicate, Roubini said the Fed may have to “deviate from its target” to avoid causing an economic slowdown and financial collapse. “The fact that they have already paused interest rate increases despite the rise in core inflation suggests that they may have accepted an inflation figure above target,” Roubini said.
Drawing attention to geopolitical tensions
The famous economist also pointed to the tense relations between the West and powers such as China, Russia and Iran. Roubini said that the conflict between Russia and Ukraine may reach a point where NATO must intervene.
Roubini also stated that the conflict in Gaza had led to further divisions, and said that “the Israeli military operation in Gaza risks fanning the flames of a broader regional conflict by causing a new increase in energy prices.”
“Rising spending on weapons (including nuclear, electronic, biological and chemical weapons) is almost certainly a result of the rearmament of the United States, Europe, NATO countries and almost everyone in the Middle East and Asia,” Roubini said.
Roubini said that due to the exceptional circumstances of the pandemic, the market is operating in an “everything bubble,” noting that the monetary and fiscal expansion has inflated the valuations of almost everything.
Losses could reach tens of trillions
This applies not only to speculative assets such as cryptocurrencies, but also to government bonds, causing investors to retreat after turning their backs on reliable assets, he said.
“This bad situation will likely continue,” Roubini said, adding that “globally, losses for both bondholders and equity investors could reach tens of trillions of dollars over the next decade.”
“If threats can be prevented, the future can be bright.”
Noting that there is some light at the end of the tunnel if humanity can overcome “major threats” such as artificial intelligence, geopolitical tensions and social change, Roubini wrote: “The future may be bright if we can prevent a dystopian scenario in which major powers and threats feed off each other in a way Destroyer”.
“Our first priority will be to survive the next few decades of instability and chaos,” Roubini said.
(Tags for translation) Disaster