Economist Nouriel Roubini, also known as Dr. Doom has made a prediction of a perfect storm for 2013. He is sticking by his prediction that things are going to get worse in 2013.
Roubini, a professor at New York University's Stern School of Business, accurately predicted the financial crisis of 2008 and he's saying that worse things are still to come in 2013. With his 2008 prediction turning out to be correct, some are a bit weary of his predictions for next year.
Dr. Doom listed five main factors that could lead to a global economic collapse. For the United States, he predicts that tax increases and spending cuts will push the country back into a recession. Factors outside of the U.S. include the deepening debt crisis in Europe; trouble with China's economy, the slowing of emerging markets; and a possible war with Iran, according to Reuters.
"Next year is the time when the can becomes too big to kick it down (the road)...then we have a global perfect storm," Roubini said in a television interview with Reuters.
Although Roubini made these predictions earlier, they are starting to seem more real as economies start to slow and Europe enters a debt crisis. These factors are already causing problems in financial markets.
He also believes that US stocks will remain flat this year and take a deep dive in 2013, which will be difficult to recover from.
"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," said Roubini.
Despite his accurate preciditon in 2008, there are still some who are skeptical about Roubini's future predictions and they believe he is just trying to scare people with his pessimistic views. They say that Roubini is just presenting a worst case scenario that is unlikely to occur.
If Roubini's predictions do turn out to be true, millions of people who are still trying to recover from the 2008 financial crisis are in store for even more serious financial problems.
For more of Dr. Doom's predictions, watch the video below.
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