Economist Nouriel Roubini earned the nickname Dr. Doom after he correctly predicted the 2008 financial crisis. Well, according to Roubini, things are going to get worse in 2013.
Dr. Doom predicts that we will have a “perfect storm” in 2013 that will grind the global economy to a halt.
Dr. Doom told Reuters:
“Next year is the time when the can becomes too big to kick it down (the road)…then we have a global perfect storm.”
According to the Telegraph, Doom believes that tax increases and spending cuts in the US could put the United States into another recession. Roubini also said that the debt crisis in Europe, a “hard landing” for China’s economy, and military action in Iran could create a “perfect storm” in 2013.
Roubini predicts that U.S. stocks will remain flat this year and could see a sharp dive in 2013.
Dr. Doom said:
“There might be a weak rally because people are being cheered by more quantitative easing by (Chairman Ben) Bernanke and the Fed, but if the economy is weakening, that is going to put downward pressure on earnings growth.”
Here’s the interview with Dr. Doom as he talks about his 2013 prediction.