Nouriel Roubini, an economic adviser to Bill Clinton in the late 1990s, has made many unpopular but correct predictions about the stock market. A year ago he predicted that the market would fall, and people laughed. They dismissed his financial predictions that the sub-prime mortgage disaster would trigger a financial meltdown. Or his view that US mortgage giants Fannie Mae and Freddie Mac would collapse, and that the investment banks would fail. Well, not anymore, not he has become a sought after economic speaker and advisor to some of the wealthiest business mean and politicians the world over.

So what is his latest prediction for our already shaky stockmarkets? Well in London last week he predicted that hedge funds by the hundreds would collapse and the makets would have to close for up to a week to stop the panic selling.

In case anyone wants a different take on this, his critics say that his predictions of a US recession in 2007 was wrong. According to Anirvan Banerji, economist with the New York-based Economic Cycle Research Institute, Roubini’s prediction aren’t based on mathematical models.

via TImes Online