Once derided as Dr Doom, the New York University professor [Nouriel Roubini] has become a media star on the back of his predictions in 2006 of a looming credit and housing bubble crisis in the US. That year, in an address to the International Monetary Fund, Roubini warned of the risk of a deep recession that would reverberate around the world. […]
Ann Pettifor, director of Policy Research in Macroeconomics (PRIME)
Pettifor’s 2006 publication – The Coming First World Debt Crisis – bombed on its release, but became a bestseller after the GFC. The then little-known British economist claimed levels of private debt were unsustainable and that the debt crisis “will hurt millions of ordinary borrowers, and will inflict prolonged dislocation and economic, social and personal pain on those largely ignorant of the causes of the crisis, and innocent of responsibility for it.” […]
Steve Keen, head of the School of Economics, History and Politics, Kingston University
Keen, an Australian, is widely regarded as one of the first economists to make the call on an impending financial crisis and later won the inaugural Revere Award for Economics for his foresight.
In December 2005, when markets seemed buoyant, Keen set up the website debtdeflation.com as a platform to discuss the “global debt bubble”. […]
Dean Baker, co-director of the Centre for Economic and Policy Research
In the years leading up to the GFC, Baker wrote numerous columns tipping an American housing price bubble and a subsequent burst. […]
In November 2006, Baker published his paper Recession Looms for the US Economy in 2007, in which he predicted a “downturn in consumption spending, which together with plunging housing investment, will likely push the economy into recession.” […]
Raghuram Rajan, governor of the Reserve Bank of India
As an economic counsellor at the International Monetary Fund in 2005, Raghuram Rajan drew disapproving looks from an audience of economists and bankers in Jackson Hole, Wyoming when he questioned the “worrisome” actions of the banks. He said the rollout of complicated instruments such as credit-default swaps and mortgage-backed securities made the global financial system a riskier place. Indeed, he argued that such developments “may also create a greater – albeit still small – probability of a catastrophic meltdown”. […]
Peter Schiff, CEO and chief policy strategist at Euro Pacific Capital
Famously appearing in debates on Fox News in 2006, Schiff was ridiculed by his fellow commentators for his bearish views. In August 2006, the stockbroker and author declared: “The United States is like the Titanic and I am here with the lifeboat trying to get people to leave the ship … I see a real financial crisis coming for the United States.” In later debates, he predicted crashing real estate prices in 2007 and a looming “credit crunch”.