« "California is on the verge of becoming the first failed state in America." | Main | Summers Profile in the New Yorker »

Bloomberg quotes Nouriel Roubini, “Markets have gone up too much, too soon, too fast.” Well, that’s one way of putting it.

I think it’s more accurate to say that Roubini’s forecasts were too bearish for too long.

So how’s the market been doing for the last seven months?

The global equity rally has added about $20.1 trillion to the value of stocks worldwide since this year’s low on March 9. Governments have poured about $2 trillion of stimulus into the global economy while central banks have cut interest rates to close to zero in efforts to revive growth.

“In the short run we need monetary and fiscal stimulus to avoid another tipping point and to avoid deflation, but now this easy money has already started to create asset bubbles in equities, commodities, credit and emerging markets,” Roubini said. “For the sake of achieving growth stability again and avoiding deflation, we may be planting the seeds of the next cycle of financial instability.”

Posted by edelfenbein at October 5, 2009 7:04 AM