Renowned economist Nouriel Roubini has issued a warning that the global economy is facing a stock market crash and a “severe recession,” at the end of the year.

In an interview quoted by Bloomberg, he predicts the global recession may last all through 2023, and US investors could see a loss of 30-40% in the S&P 500.

His statements come just as the Federal Reserve began its two-day policy meeting, which is expected to produce a sizable rate increase when their decision is announced at 2 PM EST on Wednesday.

Roubini cited large debt ratios in corporations and governments as a major factor triggering the economic collapse. He predicts that as interest rates rise and the cost to service debt increases, “many zombie institutions, zombie households, corporates, banks, shadow banks and zombie countries are going to die,” Roubini said. He continued, “So we’ll see who’s swimming naked.”

He went on to predict that the 2% target for inflation set by the Federal Reserve will be “mission impossible,” without inducing a “hard landing.” He predicts that the Federal Reserve will continue to raise rates aggressively, bringing the fed funds rate closer to 5% in the coming months as the Fed grapples with persistent inflation.

Roubini said, “It’s not going to be a short and shallow recession, it’s going to be severe, long and ugly.”

Roubini gained considerable credibility for his prediction of the 2008-2009 financial crisis, which earned him the nickname Dr. Doom on Wall Street.

Image of Nouriel Roubini courtesy of Nouriel Roubini – World Economic Forum Annual Meeting 2012