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Shallow Recession Calls Are ‘Totally Delusional,’ Roubini Warns

  • A reason Roubini cites is historically high debt ratios
  • This time it ‘could be worse than ‘70s,’ economist says
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Nouriel Roubini, CEO of Roubini Macro Associates, says calls for mild recession are “totally delusional” due to Federal Reserve policy tightening in the face of a slowing US economy. “We have no fiscal space. So the idea that this is going to be short and shallow, it’s totally delusional,” he says on “Bloomberg Surveillance.”Source: Bloomberg

Economist Nouriel Roubini said the US is facing a deep recession as interest rates rise and the economy is burdened by high debt loads, calling those expecting a shallow downturn “delusional.”

“There are many reasons why we are going to have a severe recession and a severe debt and financial crisis,” the chairman and chief executive officer of Roubini Macro Associates said on Bloomberg TV Monday. “The idea that this is going to be short and shallow is totally delusional.”