He is now warning that if the Fed and other Central Banks continue to delay in raising rates we are at risk of creating the mother of all asset bubbles.
Roubini cites the big problem being that all of this excess liquidity is going into financial transactions and not the real economy.
He cites bubbles in the following areas:
- Global real estate.
- Junk bonds.
- The tech sector.
If nothing else he gives us three asset classes to avoid.