Roubini: QE is Building a Bubble

Nouriel Roubini : “The problem is that the Fed’s liquidity injections are not creating credit for the real economy, but rather boosting leverage and risk taking in financial markets,”The Fed has said will keep rates low until unemployment reaches 6.5%. When it finally does start raising rates, it will surely raise them slowly, and probably not before Y 2015. If it moves too fast, it will crash asset markets and prompt a hard landing,“But if financial markets are already frothy now,” “consider how frothy they will be in Y 2015, when the Fed starts tightening, and in Y 2017 if not later, when the Fed finishes tightening.”