Nouriel Roubini, a professor of NYU and economist at Roubini Global Economics, hasn’t altered much his cataclysmic outlook on the world economy.
According to him, EU’s newly announced trillion-dollar bailout package for Greece and the other struggling EU members prevented “another systemic seizure of the global financial system” and “in the short run, markets are happy we are not going to have another global meltdown like Lehman (LEHMQ).”
Roubini however, argued with Aaron Task and Henry Blodget on Yahoo’s (YHOO) Tech Ticker recently, that while not everything is a bubble, the fact is we have “wall of liquidity” out there:
“When you can borrow everywhere in the world at a zero rate, and you can take leverage, the risk of creating the next asset bubble [rises significantly]“, Roubini said, predicting the next bubble will probably burst in the next 2-3 years.
Roubini also said that the global financial system is becoming increasingly prone to meltdowns:
“In practice we’ve seen that things that should have happened once every 100 years are occurring much more frequently and they’re much more virulent. The economic cost, job losses, wealth losses, and the fiscal cost of these crises have become larger and larger.”
Here’s more from Roubini:
