Bloodbath Has Just Begun: ‘Dr. Doom’ Roubini Says We’re Solely in First Inning of Major Debt Crisis
Manage episode 357944915 series 3378373
"We are in the beginning of a debt crisis in the U.S., we are only in the first few innings," says Dr. Nouriel Roubini, co-founder and chairman of Roubini Global Economics & Professor Emeritus of the Stern School of Business of New York University. "It's very likely the Fed will pivot with the implied risk of a financial meltdown," he tells Daniela Cambone. "There is a doom loop occurring and the Fed is in a position where they will be damned if they do and damned if they don't raise rates," Roubini continues. "The real economy and financial economy are contradicting each other, and the government created a mess of too much debt and now it becomes another leverage cycle all over again," he exclaims. "The Fed has been doing backdoor QE and the financial system is reckless... everything was in a bubble 2 years ago," Roubini continues. "Even in a mild recession, the S&P is going to fall between 30% and 50% and gold has upside in this environment," he says. "We are in a geopolitical depression, Israel is getting ready to potentially strike Iran and cold war between U.S. and China may soon become a hot war," Roubini states. "There is only a certain amount of time before something happens in Taiwan, we are living in a world of geopolitical depression," he concludes.