Roubini warns of asset bubbles

[steven johnson]

The history of the recent past may repeat itself.

Four new asset bubbles are seen as forming: Treasuries, Oil, Gold, Stocks.

http://money.cnn.com/2010/01/25/news/economy/assets_bubbles.fortune/index.htm

Know when to hold them, know when to fold them, know when to walk away.

"...you gotta know when to hold up know when to fold up
Know when to walk away know when to run
you never count your money when you're sittin' at the table
There'll be time enough for countin' when the dealin's done
He said every gambler knows that the secret to survival
Is knowin' what to throw away and knowin' what to keep..."

http://lyricsto.com/gambler-by-bobby-bare.htm

By Ben Rooney, staff reporterJanuary 27, 2010: 4:35 PM ET


NEW YORK (CNNMoney.com) -- Economist Nouriel Roubini said Wednesday that asset bubbles are beginning to form in markets around the world, and he called for more regulation of the global financial system.

"I fear that we're back to business as usual," Roubini told CNNMoney.com at the World Economic Forum in Davos, Switzerland. "We need to try to curb the excesses in the financial system."

Roubini, a professor of economics at New York University, said the global economy could be in for another shock as investors around the world take advantage of low interest rates to fund risky bets in certain markets.

He said asset bubbles are already beginning to form that could put the U.S. economy into a "double-dip" recession if regulators fail to impose even more strict regulations.

"There's a wall of liquidity chasing assets and some of those assets are oil, energy, food and gold," he said. While those prices have been supported by a gradual improvement in the global economy, he said that some of the increases have been "excessive."

"Oil has gone from $30 a barrel to $80 a barrel at a time when demand is down to 2005 levels, and there's a huge inventory of oil," he said. "Part of the increase in oil and commodity prices is a bu


Roubini warns of asset bubbles

[BootinUp]

1. I hope all those pious politicians are listening!

We need major reform so badly.