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Nouriel Roubini Calls for Bubbles, Then Bust

Posted by Steve Markowitz on April 30, 2013

roubini_081105_mainDr. Nouriel Roubini is a world renowned economist who teaches at New York University and has a knack for making correct predictions on the future of the economy.  He properly called the housing bubble bust and the financial markets’ crisis prior to the meltdown of 2008 that led to his nickname “Dr. Doom”.

Roubini recently made a call on the future of the economy.  The good news is that he is predicting a robust growth in the equities market for the next year or two.  The bad news is that he believes this is the buildup of yet another bubble that will result in an historic meltdown in two years.

Prof. Roubini blames Federal Reserve (Fed) policies similar to those that created the 2008 meltdown for creating new bubbles, i.e. historically low interest rate.  He predicts a bust within two years stating:  “They are creating massive fraud,” and further stating “at some point, there’s a levitational problem“.

Roubini concludes that “in the short-term, it’s great for assets“.  As for the medium and long term, that seems to be a little concern to central bankers worldwide.  But then again we can hope that Roubini is wrong this time.  However, hope is not a plan.

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