Nouriel Roubini, who predicted earlier this year that a "perfect storm" scenario would play out in the global economy, has now said that his prediction is coming true, pointing to slow growth currently hitting the United States, Europe and China.
The "perfect storm" scenario spoken about by Roubini in May highlighted four elements that if coming together could cripple the world economy. They were stalled growth in the United States, European debt spiraling out of control, a huge slowdown in emerging markets such as China, and a military conflict in Iran. He predicted at that time that this scenario would play out and hit the global economy as early as 2013.
On Monday Roubini issued an "I told you so" tweet, posting: ""(The) 2013 perfect storm scenario I wrote on months ago is unfolding."
Data released Monday showed that China's economy is grinding to a halt much quicker than most analysts predicted. Added to this last week's timid jobs growth figures for the United States, Roubini now feels justified on his prediction.
And Roubini has said that global policy makers are "running out of rabbits to pull out of the hat."
"Levitational force of policy easing can only temporarily lift asset prices as gravitational forces of weaker fundamentals dominate over time," Roubini has announced.
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So far the European Central Bank (ECB), the Bank of England, and the People's Bank of China, has found it difficult to find a clear strategy to counter the stagnant growth across major markets, and global stock markets are beginning to get increasingly concerned.