Snorvey wrote:Roubini seems to be in a permanent state of depression about the world.
Yes, but a stopped clock is correct twice per day.
Jesting aside, the debt/inflation/asset bubble situation is serious and the warning indicators are flashing red.
Central banks - especially the Fed - haven been far too easy with monetary policy since the 2008 crisis, maintaining 'emergency' measures such as QE and artificially low interest rates for a decade too long.
QE should have been gently brought to a stop ten years ago. Interest rates should have been gently raised starting ten years ago.
If sensible monetary policy had been followed, we wouldn't be in the fragile situation we are now. Admittedly 'growth' would have been a few tenths of a percent lower per year in all of the past decade but the underlying economy would still be sound and central banks would have room for emergency measures such as QE or lowering interest rates. In fact we wouldn't even be in the current predicament.