NYU economist Nouriel Roubini – known to many by his nickname, “Dr. Doom” – is getting bullish.
Roubini has been pretty negative over the past few months, despite the rally in asset prices and a general turn in sentiment toward the economy and markets on the Street.
Now, it seems like Roubini is finally coming around to the consensus view. In a way.
Coincidentally, his latest interview – with Yahoo! Finance’s Aaron Task – comes hot on the heels of the biggest sell-off this year, and as Task notes, people like Dennis Gartman are now rushing for the sidelines.
The bottom line for Roubini: “The outcome of it could be a credit bubble that’s bigger than the one we had in 2007.”
Peter Schiff: It’s Going To Hit The Fan During Obama’s Second Term – 2/18/2013
KWN: “Now will it just trigger a correction or a more serious bear market in asset prices? Who knows? Once this happens, since most of the economic activity was supported by the rise in asset markets, I suppose they will print more money, and again have larger deficits.
I think for a system to change without revolution or significant social upheaval is very difficult. Frequently, if there is a revolution or a reform, it gets rather worse than any better. So usually major changes occur as a consequence of trends that have prevailed which are unsustainable in the long-run, that have created huge damage, and then occasionally changes do occur. But it can take a long time.”
#Fed will ease for yrs. But bursting bubbles make job harder. So they let a little air out of the market. That’s all FOMC about. #HeadFake