Nouriel “Dr Doom” Roubini — the economist who predicting the housing market crash of 2007 — is now predicting a decade of depression.
Roubini believes the recovery from the pandemic will be slow, pulled down by inflation, reductions in supply, and the loss of jobs.
His “decade of depression” may not damage the stock market or house prices, but it will hurt ordinary workers.
The economist who predicted the 2007 housing market crash has predicted a decade of depression as the world emerges from lockdown. Nouriel “Dr Doom” Roubini yesterday said that supply shocks and inflation will drastically slow the global economic recovery, which will also fail to replace lost jobs.
This is bad news for the stock market, which usually suffers declining stock prices during periods of high inflation. That said, a shift to technology will benefit some companies. Meanwhile, stagflation might be good for the housing market, at least insofar as it will push up house prices.
Dr Doom Strikes Again
Nouriel “Dr Doom” Roubini famously predicted the housing market crash of 2007. Now, in an interview during Bloomberg’s Invest Global virtual conference, he’s predicting a decade of depression.
While he admits the recovery will begin this year, he also believes it will be “anemic.”
There’s going to be a painful process of deleveraging, both by the corporate sector and the housing sector. They have to be spending less, saving more, and doing less investment.
In other words, less growth. Although less investment in the housing market may cause higher prices.