Saturday, March 29, 2014

Roubini: Watch out if the Fed makes this mistake

Nouriel Roubini, the bearish economist known as “Dr. Doom,” warned investors to look out if the Federal Reserve waits too long to hike interest rates, which could consequently cause a huge market bubble. “Last time around it took them two years to normalize from 5 to 5.25, too little too late … they created the biggest housing, real estate credit and equity bubble,” Roubini said Tuesday on CNBC’s “Closing Bell.” This time “it’s going to take them up to four years to go from zero to a neutral 4 percent. The risk is that we are going to create another huge bubble in the economy.”

Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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