Mocked as “Dr. Doom,” Nouriel Roubini can make one boast that his detractors can’t, said Dominic Rushe in the London Times: Roubini was right. Since 2006, the 49-year-old New York University economics professor has warned that financial companies were taking too many risks with too much borrowed money. He correctly predicted the collapse of Fannie Mae and Freddie Mac, and he foresees even worse in coming months.
Last week, Roubini predicted that “hundreds of hedge funds will go bust and stock markets may soon have to shut—perhaps for as long as a week—in order to stem panic selling.” The next day, the Moscow exchange briefly halted trading. Chalk it up to “objectivity,” Roubini says. Because he owns no securities, he says, he has no need to hype their value. “I have made very specific predictions and I have been right all along,” he says. Right, yes; modest, no.