Isabelle Lee
Mon, July 25, 2022 at 9:39 AM·2 min read
Shallow Recession Calls Are ‘Totally Delusional,’ Roubini Warns
(Bloomberg) -- Economist Nouriel Roubini said the US is facing a deep recession as interest rates rise and the economy is burdened by high debt loads, calling those expecting a shallow downturn “delusional.”
“There are many reasons why we are going to have a severe recession and a severe debt and financial crisis,” the chairman and chief executive officer of Roubini Macro Associates said on Bloomberg TV Monday. “The idea that this is going to be short and shallow is totally delusional.”
Among the reasons Roubini cited was historically high debt ratios in the wake of the pandemic. He specifically mentioned the burden for advanced economies, which he said continues to rise, as well as in some sub-sectors.
That differs from the 1970s, he said, when the debt ratio was low despite the combination of stagnant growth and high inflation known as stagflation. But the nation’s debt has ballooned since the financial crisis of 2008, which was followed by low inflation or deflation due to a credit crunch and demand shock, he added.
“This time, we have stagflationary negative aggregate supply shocks and debt ratios that are historically high,” said Roubini, who is nicknamed Dr. Doom for some of his dire predictions. “In previous recessions, like the last two, we had massive monetary and fiscal easing. This time around we are going into a recession by tightening monetary policy. We have no fiscal space.”
Last edit: 25 Jul 2022 12:54 by homeagain. Reason: edit
Oh don't worry HA, the people you voted for are on this. Instead of giving the people the truth, all they have to do is change the definition and move the goal posts so that the sheep will not abandon them in November.
White House website recently tweaked their definition of a recession, conveniently after GDP numbers were released.
Don't expect your "fact" checking losers to touch this one either.
Inflation hits everyone, recessions hit a much smaller percentage of Americans. Expect the Fed to keep raising interest rates...and expect higher unemployment plus hours cut for many employees.
Thomas Sowell: There are no solutions, just trade-offs.
Roubini was right.....(in July). It is going to take a year or more to "get set straight".....(oh my, ASTROLOGY
IS awesome:) (yes and Trump WILL be indited,but it will be awhile...Q1 2024 or last of 2023).....take bets?
Must be nice to have stars telling you what the economy will look like. Instead economists juggle information and have regular updates as the year goes on. Will Putin sue for peace? Is he preparing a new attack on Kiev? Will President Biden run again? Will President Trump win the primary?
Thomas Sowell: There are no solutions, just trade-offs.
Trump is done and the Demoncrats will have to pivot to DeSantis as being their new Hitler. Our economy will be trashed by 2024 but Democrats will want more of the same and will blame everyone but themselves. Wait for it….
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
Rick wrote: Trump is done and the Demoncrats will have to pivot to DeSantis as being their new Hitler. Our economy will be trashed by 2024 but Democrats will want more of the same and will blame everyone but themselves. Wait for it….
U R IN ERROR, 2024 will bring a better economy,we r going thru the beginning/middle NOW. the end of the
trashed economy will be 2024......AGAIN it is a cycle and the crypto crash and supply chain chaos will not be a factor in 2024
Rick wrote: Trump is done and the Demoncrats will have to pivot to DeSantis as being their new Hitler. Our economy will be trashed by 2024 but Democrats will want more of the same and will blame everyone but themselves. Wait for it….
U R IN ERROR, 2024 will bring a better economy,we r going thru the beginning/middle NOW. the end of the
trashed economy will be 2024......AGAIN it is a cycle and the crypto crash and supply chain chaos will not be a factor in 2024
Just curious what economists are telling you this or is this really just based on the stars as ramage asked? Is Paul Krugman your economic “expert”?
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
writers decide that President Trump was an angel compared to DeSantis. 
