What are the factors that create a “perfect storm” in the financial markets according to Nouriel Roubini

The Economist Nouriel Roubini He assured that a “perfect storm” is brewing in 2023 which will affect the financial markets due to several factors.

“Now we face the perfect storm: inflation, stagflation, recession and a possible debt crisisRoubini warned in a media interview. ABC from Australia.

known as Dr. CatastropheAnticipating the financial crisis which broke out at the end of 2008, he insisted on his not very encouraging forecasts for the economy: “a crisis of stagflation will break out this year”.

Roubini felt that Federal Reserve it would have to raise policy rates “well above” 6% to bring inflation, currently estimated at 6.4%, back to its target of 2%.

This would cause a severe recession, “a stock market crash and an explosion of defaults, which would leave the Fed no choice but to give up its fight against inflation and let prices spiral out of control,” review Market Insider. “Either way, the result would be a deep recession, followed by more debt problems and inflation,” the publication adds.

The specialist in financial matters insisted on his negative position in the face of the manorama of the economy in the United States, despite the fact that Markets are increasingly hopeful that the country could ride out a recession this year.

Late last year, Roubini swooped down on the world’s leading cryptocurrency exchange: Binance.

At a conference held at Abu Dhabi, United Arab Emirates, called the company a “ticking time bomb”. He warned of business risks and the practices of Changpeng Zhao, the CEO of the platform better known as “CZ”.

After former Binance won regulatory approval to offer crypto custody services in Abu Dhabi, Roubini slammed the cryptocurrency exchange and its CEO on stage during Abu Dhabi Financial Week (ADFW ) 2022.

In his speech, Roubini expressed his disbelief that Changpeng Zhao and its cryptocurrency trading platform licensed to operate in the United Arab Emirates (UAE).

“Unfortunately this ecosystem is totally corrupt and the lesson of the past few weeks is that these people should get out of here. I can’t believe CZ Binance has a license to operate in the UAE,” the professor said. economy.

As he explained, Binance has been “banned in the UK”, Zhao is “under investigation by the US Department of Justice for money laundering, $8 billion from Iran, and he is here on this stage, and he has his residence in this country”. .

“The regulator should think carefully. It’s a walking time bomb. He should be expelled from this country and not allowed to operate. Sorry to say it’s gonna get worse Sam Bankman Fried», sentence of Roubini.

Roubini has long been known for his critical stance on the cryptocurrency industry, decrying digital assets as pyramid schemes.

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