As new coronavirus cases continue to appear in the United States, the economist who gained international recognition for his accurate predictions forecasting the 2008 economic collapse has weighed in with a new prediction. According to Nouriel Roubini, fears over the viral outbreak will cause global stock markets to tank this year and the ultimate loser will be Donald Trump.
Roubini made his prediction in an interview with the German magazine Der Spiegel last week, but his remarks were picked up on Monday by the site Business Insider.
The economist made his remarks last Thursday, during the worst week for the United States stock market since 2008. Yet, as The Washington Post reported, on Monday, stock markets are bouncing back, gaining 750 points by the middle of the trading day.
Investors gained confidence by anticipating that the U.S. Federal Reserve Bank would slash interest rates, and that other central banks around the world would do the same in an effort to prop up the markets, according to the Post report.
But according to Roubini's prediction, the bounce will be only a passing phase. In fact, he said, stock markets around the globe will plunge up to 40 percent in 2020 and advised investors to switch from the markets to cash or government bonds.
"You have to hedge your money against a crash," Roubini said, as quoted by BI. "That's my motto: 'Better safe than sorry!'"
The economic crash will slam the brakes on Trump's reelection bid, Roubini predicted, according to the BI report.
The state of New Hampshire reported its first case of the coronavirus on Monday, according to a CNN report. The case was the 92nd reported throughout the U.S.
Fears of contracting coronavirus were also beginning to show effects on business. British Airways announced on Monday that it would cancel more than 200 flights due to lack of demand as passengers seemingly fear contracting coronavirus on an airplane, according to the CNN report. The cancellations included 12 round-trip flights between London and New York City.
In the U.S., confidence in the government response to the virus has been damaged by reports that the early testing procedures for coronavirus were "bungled" by the Centers for Disease Control and Prevention, as The Inquisitr has reported.
As of Sunday, fewer than 4,000 tests had been conducted in the U.S., compared to more than 60,000 in South Korea, a country with less than 20 percent of the U.S. population.
In his Der Spiegel interview, given before New York announced that it had detected its first case of coronavirus, Roubini said that New Yorkers were already "hardly going to restaurants, cinemas, or theaters," adding that once the virus inevitably strikes the country's most populous city, "we are totally f*cked."