The Economist Nouriel Roubini He assured that a “perfect storm” is brewing in 2023 that will affect the markets due to several factors.
“Now we face the perfect storm: inflation, stagflation, recession and a possible debt crisis”, warned Roubini in an interview with the media abc from Australia.
known as dr catastropheAnticipating the financial crisis that broke out at the end of 2008, he insisted on his not very encouraging forecasts about the economy: “a stagflation crisis is going to emerge this year.”
Roubini estimated that the Federal Reserve it would need to raise policy rates “well above” 6% for inflation, currently estimated at 6.4%, to fall back to its 2% target.
This would cause a severe recession, “a stock market crash and an explosion in debt defaults, which would leave the Fed with no choice but to back down from its fight against inflation and let prices get out of control”, review Market Insider. “Anyway, the result would be a strong recession, followed by more debt problems and inflation,” the publication adds.
The specialist in financial matters insisted on his negative position regarding the manorama of the economy in the United States, despite the fact that There is growing hope in the markets that the country could weather a recession this year.
At the end of last year, Roubini came down hard on the world’s leading cryptocurrency exchange: Binance.
During a conference held in Abu Dhabi, United Arab Emirates, called the company “a ticking time bomb.” He warned about the risks of the company and the practices of Changpeng Zhao, the CEO of the platform better known as “CZ”.
After the former Binance won regulatory approval to offer crypto custody services in Abu Dhabi, Roubini criticized the cryptocurrency exchange and its CEO onstage at Abu Dhabi Financial Week (ADFW) 2022.
In his speech, Roubini expressed his disbelief that Changpeng Zhao and its cryptocurrency trading platform to be allowed to operate in the United Arab Emirates (UAE).
“Unfortunately, this ecosystem is totally corrupted and the lesson of the last few weeks is that these people should get out of here. I cannot believe that CZ Binance has a license to operate in the United Arab Emirates,” said the economics professor.
As he explained, Binance was “banned in the UK,” Zhao is “under investigation by the US Department of Justice for money laundering, $8 billion from Iran, and he is here on this stage, and he has residence in this country.” .
“The regulator should be thinking carefully. It’s a walking time bomb. He should be kicked out of this country and not allowed to operate. Sorry to say it will get worse than Sam Bankman-Fried”, Roubini sentence.
Roubini has long been known for his critical stance on the cryptocurrency industry, decrying digital assets as pyramid schemes.
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