Dr. Doom is back. Last week, New York University economist Nouriel Roubini decided to speak out about the current economic recovery, warning that it cannot last.
Roubini argues that traders are borrowing at negative 20% rates to "invest on a highly leveraged basis on a mass of risky global assets that are rising in price due to excess liquidity and a massive carry trade."
Roubini notes that the Fed will eventually have to raise interest rates or outside events will occur. Either of these could cause a crash as investors "rush to lock in profits."
http://www.bloggingstocks.com/2009/11/10/nouriel-roubini-believes-the-bubble-is-about-to-burst/
