Economist Nouriel Roubini of New York University, commonly known as “Dr. Doom,” surprisingly says that the global investor reaction to China’s stock-market collapse was "excessive, unreasonable and irrational."
He dismissed market panic over China as "manic depressive" behavior by ill-informed investors, the U.K. Telegraph reported.
On “Black Monday,” the Shanghai Composite index lost 8.7% in one day at the end of August, prompting panic-selling across the globe as investors feared China's growth slowdown could be worse than expected.
"China is not in free fall," he said.
"The slowdown in China is neither a hard landing or a soft landing, it's a bumpy landing,” he said.
“It could be better managed but growth is not likely to be worse than 6.5% this year and 6% next year,” he said.
However, Roubini warned the global economy remains fragile and welcomed the ECB's hint at a possible extension to its QE program as an insurance policy against a crisis point for emerging markets.
"The U.S. Federal Reserve should wait and see if it is a temporary storm, and not a gathering storm,” he said.
"It may have to wait until May to raise rates, and the Bank of England may have to wait until the spring of next year," he said.
Roubini said global markets have swung with impetuous ferocity from complacency about Chinese uber-growth to "extreme pessimism," suddenly switching from talk of 7 percent growth rates to 3 percent or even zero, when in reality little has changed.
"None of this is happening. The slowdown in China is neither a hard landing or a soft landing, it's a bumpy landing. It could be better managed but growth is not likely to be worse than 6.5 percent this year and 6 percent next year," he said.
Other financial experts also paint an ever darker view of the economy.
Robert Kiyosaki, best-selling author of “Rich Dad, Poor Dad,” tells Newsmax TV
that the global economy has collapsed and Wall Street has been manipulated by the Federal Reserve and US Treasury.
He said the only way to survive such a treacherous and volatile investing environment is with a solid financial education.
“The global economy is in a collapse right now,” he told “Newsmax Prime.”
“Wall Street is manipulated. The Fed as well as U.S. Treasury keep propping it up,” the founder of the Rich Dad company said.
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