"It's not going to be that we are going to get a rout in the bond market, because the Fed knows that when they exit, they have to exit slowly – and they can hold to maturity. So, if you're not going to have goods inflation – if you're not going to exit fast enough – then the risk is like during the cycle of 2003-2006, where we're exiting very slowly. It was a measured pace – 25 basis points every six weeks, and we got what? An asset bubble. A credit bubble. A housing, a sub-prime bubble.
So, like Jeremy Stein at the Fed says, we are at the beginning of another credit bubble, because we are going to exit so slowly that the financial excess is not going to go into goods inflation; we're not going to have a bond market rout." - in Business Insider
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Nouriel Roubini is an American economist. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics.