Nouriel Roubini, of New York University's Stern School of Business, was nicknamed "Dr Doom" for being one of the first to warn about a housing collapse in America and a consequent financial crisis. Today he's concerned about the UK's vote to leave the European Union, which has created "a whole bunch of financial, economic, political and geopolitical uncertainties", he said at the World Economic Forum in Tianjin, China, last week.
The British government and Europe's leaders should try to negotiate a solution that could be accepted by British voters in another referendum, but the chances of this happening are slim. If Britain does leave the EU, this could lead to a wider disintegration of both unions, with Scotland becoming independent, while the Nordic countries might start to question their place in Europe. However, the economic and financial impacts of Brexit are unlikely to be as deep as those of 2008, and will not be a major drag on the global economy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
The five insurance policies you should haveSome insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency
-
Is Donald Trump putting the US dollar in danger?Donald Trump's administration sees one of its greatest advantages – the US dollar – as a burden. Gold is the obvious beneficiary, says Cris Sholto Heaton.
