Nouriel Roubini: 5 Reasons for Economic Optimism .Next year the world's problems -- from the sputtering recovery in the U.S. to monetary crisis in Europe to the slowdown in China -- could overwhelm the economy, says NYU economist Nouriel Roubini
Dr. Doom 2013 prediction: Economist Nouriel Roubini recently stated that a "perfect storm" for economic disaster is currently brewing, and he stands behind his beliefs. Considering Roubini is the guy who accurately predicted the country's previous financial disaster, it's safe to assume that countless buttholes are being clenched whenever this guy has something to say. And while you may think the 2008 crisis was the worst that could happen, Dr. Doom feels that 2013 is going to be much worse.
Roubini, who teaches at New York University's Stern School of Business, explained the economic disaster looming on the horizon could cause the global financial system to "grind to a halt", which isn't the sort of thing you want to hear when you're attempting to keep your family's heads above water. Most folks are still trying desperately to regain the foothold they lost during 2008′s disaster, never mind preparing for a much larger problem down the road.
Dr. Doom's theory: Tax increases and spending cuts will push the United States into yet another recession. This, combined with Europe's debt crisis, China's wonky economy, and a potential military presence in Iran, could shove most of the civilized world towards a complete collapse. The problem, of course, is that we're quickly heading towards the point of no return. Unless something is done immediately to turn the tide, turmoil seems inevitable.
"There might be a weak rally because people are being cheered by more quantitative easing by (Chairman Ben) Bernanke and the Fed, but if the economy is weakening, that is going to put downward pressure on earnings growth," Roubini explained.