Renowned economist Nouriel Roubini, dubbed "Dr. Doom," has warned that a credit crunch will tip the US into recession. In an interview with Fox Business, Roubini said the troubles of smaller US regional lenders face large outflows of deposits as customers with draw their money and take it elsewhere. Such banks are significant lenders to households and small businesses for mortgages, SMEs for commercial real estate, and therefore the likelihood of a credit crunch is great. He added that it would make a recession, a hard landing, much more likely than before, leading to serious problems for a significant portion of the US banking system. Eminent economist, Mohamed El-Erian, has supported Roubini's stance, saying the US economy is facing increasing odds of recession and stagflation after trouble in the global banking system over recent weeks. Investors are reeling over where to park their deposits and with whom to do business. With credit contraction playing out over the next several quarters and reaching its apex towards the end of the year or the beginning of the next year, the economy could bypass a recession as long as there are no policy mistakes.