The economist who predicted the 2008 crisis predicted the development of a recession in the United States

American economist Nouriel Roubini predicted the beginning of a credit crisis in the United States due to troubled regional banks, which will increase the risks of a recession. About this he informed Fox Business TV channel.

“This crisis will greatly increase the likelihood of a recession, much more severe than it was before. Thus, we face a dangerous challenge for a large part of the American banking system,” he said.

Roubini stressed that regional banks are major lenders for mortgages, commercial real estate, and also issue loans to small and medium-sized businesses. However, after the collapse of Silicon Valley Bank, they made the loan approval process more difficult. In this regard, a credit crisis will begin in the US, Roubini added.

On March 10, the US Silicon Valley Bank (SVB), which was the 16th largest bank in the US, collapsed. Western media noted that its collapse was the second largest bankruptcy in US history after the closure of Washington Mutual in 2008. According to the FDIC, the damage from the collapse of SVB amounted to approximately $ 20 billion, the exact amount will be named after the bankruptcy proceedings are completed. On March 13, Signature Bank also shut down due to “systemic risks.”

After that, the international rating agency Moody’s lowered the outlook for the US banking system from stable to negative – the agency expects an increase in the Fed rate and assumes that by the end of 2023 the US economy will fall into recession, which will put even more pressure on the banking sector.

American economist, New York University professor Nouriel Roubini is known as Doctor Doom, or Doctor Rock. He was one of the economists who managed to predict the development of the global financial crisis in 2008 after the collapse of the housing bubble.