American economist and New York University professor Nouriel Roubini is infamous for his prophetic foretelling of the housing bubble in 2007 and his current pessimism of Eurozone unity. In a recent interview with Bloomberg, Roubini revealed that he foresees another major collapse to occur in 2013 along with several other grim predictions. ETF Daily News reports on Roubini’s forecasts:
1) Slow-motion or fast motion train wreck in Europe
2) U.S. economic stall to the next leg down in the Depression
3) China landing harder rather than softer
4) Emerging markets (BRICS) sharply slowing in growth
5) Geopolitical time bomb of war between the U.S., Israel and Iran
In 2013, chances are the U.S. will decide to attack Iran, “doubling” oil prices overnight, said Roubini. “So, it’s a perfect storm,” he said.
“Next year could be a global perfect storm,” he added. “It’s much worse” than 2008. Policymakers have run out of “policy rabbits to pull out of the policy hat.” There is no “safety net” left to the system.
One day everyone will wake up and figure out that, it’s a “problem of solvency, not liquidity,” but then the damage will have already become apparent via a deeper Depression in Europe and the United States.
Roubini also predicts a complete breakup of the eurozone within five years.