Prince said Finance News: Nouriel Roubini, a famous economist with the reputation of "Doctor of Doomsday", warned that the hot inflation of will lead to the global financial crisis of , and it is the worst crisis in half a century (50 years).
On Saturday (22nd), according to Russia Today (RT), citing famous economist and professor of at New York University, Nouriel Roubini, said that global financial markets should prepare for a period of recession that was more severe than the collapse of the 1970s and 2008.
In addition, Roubini warned that central banks in various countries will eventually abandon tightening monetary policy before inflation is defeated.
"It will get ugly, recession, you will have a financial crisis," Roubini added.
In addition, the economist who had accurately predicted the subprime mortgage crisis in 2008 also said that companies have used years of low interest rates to increase debt, given that the stock market fell by more than 20% this year ( US stock ), tight private equity, cooling of US real estate, and a decline in credit markets.
Roubini said: "Inflation will not drop fast enough because supply is negatively impacted! Remember that when supply is negatively impacted, there will be (economic) recession and high inflation. We won't let inflation fall enough to reach 2%. "
According to Roubini, the result of all this will be a time that combines the worst period of the 1970s with the global financial crisis.
"This is just the beginning of pain. When the real pain comes, some multinational groups may still be able to deal with it, but small companies will be in trouble... and it may even produce another Lehman effect of , and then Fed will have to be helpless. (world economy) will encounter a severe economic recession, (small companies) will be impacted by the financial markets, and they will definitely fail," the economist warned at last.
What do you think about this? What do you think will be global economy next? How will countries respond?
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