We Are On The Edge of Something Really Bad: Roubini Warns of New
Nouriel Roubini, the respected New York University economist, says the Federal Reserve’s quantitative easing (QE) is brewing a credit bubble that means trouble down the road.
Through QE, the Fed has injected more than $2 trillion into the financial system over the last five years,
“The risk from QE isn’t goods inflation; it’s not going to be a rout in the bond market, because the Fed will exit slowly,” Roubini tells Yahoo. “The risk is like during the 2003-06 cycle. We exited very slowly, and we got an asset bubble.”
But he thinks this bubble could be “bigger than 2003-06.”
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