Nouriel Roubini: lacklustre recovery followed by a depression
We may see a U-shaped recovery at first, but then will come the L-shaped depression, says Nouriel Roubini.

This crisis may give way to a “lacklustre U-shaped recovery” this year, says Nouriel Roubini, the economist known for predicting the 2007 housing-market crash. But “an L-shaped ‘Greater Depression’ will follow”.
Global debt levels were already perilously high. Now, government spending to tackle the crisis will bring massive deficits. Worsening demographics will maintain the pressure on public finances even after Covid-19.
The loss of income for households and companies will bring rising defaults. Together with huge spare capacity in the economy that will ensure a sluggish recovery and may create deflation. As central banks battle this through unconventional monetary policies that amount to currency debasement, expect stagflation (stagnant growth paired with inflation).
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
Digital disruption means that income and wealth gaps will widen further. This will combine with fears about supply-chain security to encourage nationalism, populism and xenophobia. The results will include de-globalisation and a backlash against democracy.
The US-China stand-off will mean decoupling in trade, investment, data, technology and monetary arrangements. This diplomatic break-up may usher in a new cold war, fought as cyberwarfare.
Finally, environmental disruption and climate change will wreck havoc – including future pandemics.
These risks,”already looming large before Covid-19 struck”, threaten to sweep “the entire global economy into a decade of despair”.
-
Equity release rates drop – is it worth unlocking cash from your home?
News Lifetime mortgage rates are falling from their record highs - is equity release worth another look?
By Marc Shoffman Published
-
Hargreaves Lansdown launches fixed-term cash ISA product
savings/hargreaves-lansdown-fixed-cash-isa-launch Investment platform Hargreaves Lansdown is to offer fixed term cash ISAs via its Active Savings platform paying 4.8%, tax free - but is it any good?
By Kalpana Fitzpatrick Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
Best investing apps
We round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
By Ruth Emery Last updated
-
The top funds to invest in - November 2023
Tips Investors are focused on income strategies and FTSE heavyweights. We look at what investors have been adding to their portfolios in the last month
By Vaishali Varu Last updated
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published