Marketwatch published a report recently, in which a crypto critic Nouriel Roubini said that the world is at the verge of facing a financial crisis and the credit of this risk goes majorly to the US president Donal Trump. Stocks market were showing bull trends in 2017; in 2018 the market witnessed a steep drop across the world in many industries.
On the roll a coaster ride of the market since 2017, Roubini says that the growth in stock markets was mainly due to tax cuts, which were most beneficial to corporates and business. The present US leader Donald Trump is ambitious and aims to deregulate specific sectors. Trump has not stopped here; he is after Federal Reserve too. The US Fed recently has declared a hike in interest rates by a mere quarter point.
He said that Trump is behaving like Dr. Strangelove of financial markets. Dr. Strangelove was a catastrophic maniac from a Stanley Kubrick’s movie which put the work at a nuclear risk. Roubini said Trump, is acting similarly. He is flirting with the economy and putting it at risk. The market has predicted his behavior and sensed the danger. No wonder a financial crisis is at the door, and the worldwide recession has grown.
Roubini made it to headlines when he criticized crypto assets and blamed them for the falling market. He said that cryptocurrencies and bitcoin are the parents of all the scams and economic bubbles. He also took a shot at stablecoins. Stablecoins got famous in 2018.
He added that the biggest scam of the time is the introduction and invention of stablecoins. He was aiming specifically on Tether. It is a ‘debate-attracting’ cryptocurrency issued by Tether Limited. The company claims that each unit of the token issued by the company is pegged against one US dollar. The token issued is called stablecoin as it is not subject to the market fluctuation. It would always be valued at $1.00
With BTC down almost 80% from peak (from 20K to ~4K) & all other cryptocurrencies down 80% to 99% I rest my case that this crypto bubble went bust for good. I feel vindicated. So I will take a break for a few days from this toxic Crypto Twitter. Waste of time to convince zealots
— Nouriel Roubini (@Nouriel) November 20, 2018
Roubini had testified before the United States Senate Committee dedicated to issues related to banking, housing, and urban issues. He debated furiously with Ethereum founder. He went ahead and said that crypto is centralized.
Last year, the market closed at a negative point. Experts around the world blamed it on the trade war between China and the US. But, Roubini has blamed it on Trump and his tax cut action which has lead to an increase in Long-term rate of interest. He also has criticized the US ’s immigration policy changes made by Trump.