Roubini forecasts gloom for Turkey
Güncelleme Tarihi:
ISTANBUL - Economist Nouriel Roubini, famous for predicting the bursting of the housing bubble in the United States as early as 2005, predicted dark days ahead for Turkey, in an interview with the Financial Times.
Responding to a question on what could be “the next shoe to drop,” Roubini, dubbed “Dr. Doom” for his dire predictions, said “the process of deleveraging is going to continue.”
“You could have a thousand if not more hedge funds going bust all at the same time,” the Istanbul-born economist said. “There are about a dozen [emerging market economies] that are on the verge of a potential financial crisis: Latvia, Estonia, Lithuania, Hungary, Bulgaria, Romania, Turkey, Ukraine in emerging Europe...Pakistan, Indonesia or Korea in Asia. Places like Ecuador that just defaulted. Argentina and Venezuela in Latin America.”
Some of these countries could “get in trouble and there could be contagious effects to other financial markets in other emerging markets,” Roubini said.
Predicting the current credit loss to “spread from mortgages to commercial real estate, to credit cards, to auto loans, to leverage loans, to industrial and commercial loans,” the economist said there are many sources of financial stress.
2009 will be a year of “economic stagnation and recession for most of the global economy with deflationary pressures,” Roubini, also the chairman of RGE Monitor, predicted. “I expect a global recession and a severe one.”