Dr. Doom Nouriel Roubini is definitely optimistic in regards to the economy

During a Interview on Bloomberg TV On Wednesday, he dismissed investors’ fears of an impending downturn, joking that stock and bond markets had predicted 10 of the last three recessions.

He added that markets also completely misjudged the variety of upcoming Fed rate cuts last 12 months, as traders expected way more aggressive easing.

“The markets are often wrong about economic developments and Fed actions,” Roubini said. “There are some clear signs of some slowdown in the economy, but I don’t think the data suggest we’re going to see a hard landing any time soon. If anything, there are actually some elements of strength in the economy.”

Wait, what?

He rose to fame when his warnings in regards to the economy and the actual estate bubble were initially laughed at – but when the nice financial crisis struck, they proved to be correct.

Since then, he has often pointed to quite a few other disasters, warning of a stagflationary debt crisis in late 2022. He also sounded the alarm for 2023, saying a “severe recession” was likely amid a “Bermuda Triangle” of economic dangers and the “mother of all debt crises.”

Last 12 months, the consensus on Wall Street was that the U.S. would slide into recession after the Federal Reserve made essentially the most aggressive rate of interest hikes in 4 a long time.

But in September last 12 months, because the economy continued to plod along with no downturn, he softened his tone and said a brief or mild recession was possible.

Then, U.S. manufacturing and employment data showed rapid declines earlier this month, sparking a large sell-off in global equity markets and providing evidence that the few remaining bears on Wall Street could also be right.

The subsequent weekly jobless claims data got here in lower than expected, calming nerves and helping the stock market recuperate much of its losses.

Meanwhile, others on Wall Street have highlighted data that time to fundamental strength within the economy. Apollo chief economist Torsten Sløk said in an announcement on Saturday that the Atlanta Fed GDP Tracker indicates growth of two.9% within the third quarter.

“The bottom line is that there are still no signs of a recession in the US and the US economy is doing well. Daily and weekly data on restaurant reservations, air travel, hotel bookings, credit card data, bank loans, Broadway show attendance and box office receipts are showing steady growth, and weekly data on bankruptcy filings are showing a downward trend,” he added.

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