"Dr. Doom" Now, Nouriel Roubini warns of America's newly elected President hefty broadside and policies that threaten growth in the US and worldwide.
The market has received President Donald Trump promises of tax cuts, incentives and deregulation with open arms.
But now the reality catch up with the president and Nouriel Roubini, an American economist, flagging in a blog post for the honeymoon may be over. Nouriel Roubini is known for his pessimism and goes by the name "Dr. Doom" because he was already in 2006 warned of the housing bubble in the United States that triggered the financial crisis in 2008.
Now write the famous economist to expectations of fiscal stimulus has pushed up the stock price, but also long-term rates, which reduces investment desire and affects the interest rate sensitive sectors such as real estate. A stronger dollar also threatens to knock out hundreds of thousands of jobs in the US manufacturing industry.
But more is to be expected, says Dr. Doom. Previously, both Ronald Reagan and George W. Bush proved that Republican presidents can seldom resist the temptation to pour on the unfunded tax cuts. History repeats itself, the budget deficits drive up interest rates and the dollar in the long run will hurt the economy.
Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics