"If financial markets are already frothy, consider how frothy they will
be when the Fed starts tightening — and then when the Fed finishes
tightening.""The Fed's (and other central banks') liquidity injections
are not creating credit for the real economy, but rather boosting
leverage and risk taking in financial markets," Roubini and Bremmer
explain.
"Thus the exit from the Fed's QE [quantitative easing] and zero-interest-rate policies will be treacherous," they maintain.
say Nouriel Roubini, a New York University economist, and Ian Bremmer, president of Eurasia Group, a consulting firm in Institutional Investor in a new paper called "Unveil the New Abnormal"