Tuesday, May 20, 2014

Roubini : We Are in the beginning of Credit Bubble

“All the risky things that were happening back in ’06 and ’07 are back again to the same level, if not more,” Roubini told Fox Business Network (FBN). “So we are in the beginning of a credit bubble, but just the beginning. A year or two from now, with the policy rate still barely above zero, the risk is that it becomes a full-fledged bubble.”
Roubini warned that if the Fed ends its easing initiatives then a bond market crash could occur and eventually destroy the economy: “If you exit too late, you create a financial bubble. That’s the biggest challenge for the Fed in the next three to four years.”

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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