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Economic experts who accurately predicted the 2008 financial crash has warned that soaring debt presents a “mega threat” to the global economy.
Economists have said that following the last ten years of low interest rates and extreme levels of borrowing has created a “tinderbox timebomb” and are warning this could spark a “contagious inferno” leading to a global economic collapse.
Nouriel Roubini – known as “Dr Doom” said that the UK is suffering the “worst stagflation” of all advanced global economies and that the Bank of England are expecting “at least five quarters of contraction.”
Roubini said the UK are suffering the “worst stagflation of all advanced economies,” he added, that a “recession is guaranteed. Even the Bank of England expects at least five quarters of contraction.”
In a letter seen by Bloomber, Mark Spitznagel, chief investment officer of Miami-based Universa Investments who specialise in tail risk mitigation, warned of an economic crash.
Spitznagel warned, “It is objectively the greatest tinderbox-timebomb in financial history – greater than the late 1920s, and likely with similar market consequences.”
In 2022 Spitznagel warned, “If this credit bubble ever pops, it’s going to be the most catastrophic market failure that anyone has ever read about.”
He told Universa clients, “The correction that was once natural and healthy has instead become a contagious inferno capable of destroying the system entirely.
“The world is just too levered today, the debt construct just too big.”
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