DEFINITION of Nouriel Roubini
Nouriel Roubini is an economics professor at New York University's Stern School of Business largely known for his prediction of the 2008 financial crisis. Professor Roubini is also chairman of his consulting firm Roubini Global Economics.
BREAKING DOWN Nouriel Roubini
Born in 1959, Roubini was educated at Hebrew University of Jerusalem, Bocconi University and Harvard University. Roubini made a name for himself for foreseeing the 2008 financial crisis at least a couple of years in advance. He was one of just a few sounding the alarm bells when almost everyone else was intoxicated by reported economic growth, leaping home values and surging stock markets. Even then-Fed Chairman Bernanke extraordinarily remarked at a May 17, 2007 banking conference that "we believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system." (Believe your eyes, you read that right.) Roubini's pessimistic pronouncement leading up to the crisis earned him the nickname "Dr. Doom." When the markets proved him correct, Roubini was in high demand on cable and network TV, newspapers, magazines and other media outlets. What was going to happen next?
Where should investors hide? How do we get out of this crisis? How bad will it get? When will it end? These were the many questions that the media-anointed omniscient oracle fielded day after day as panicked investors around the world wondered what would happen to their jobs, savings, homes, way of living. Dr. Doom persisted in his gloomy predictions, but as economies and financial markets began to slowly recover and then gather more strength, his usefulness as a media darling who could attract viewers and readers diminished greatly and he was dropped like a bad habit from the airwaves and print. Media switched horses to bright and sunny optimists who seemed to be in tune with the prevailing market environment.