Again, maybe right but for the wrong reason.
My take is the gold and commodity bubble is due to people (Roubini included) believing Fed policy is inherently inflationary – printing money and all that – when it’s not.
When those funds are done being committed, it can all end very badly in a deflationary tumble.
By Michael Patterson
Oct. 27 (Bloomberg) — Investors worldwide are borrowing dollars to buy assets including equities and commodities, fueling â€œhugeâ€ bubbles that may spark another financial crisis, said New York University professor Nouriel Roubini.
â€œWe have the mother of all carry trades,â€ Roubini, who predicted the banking crisis that spurred more than $1.6 trillion of asset writedowns and credit losses at financial companies worldwide since 2007, said via satellite to a conference in Cape Town, South Africa. â€œEverybodyâ€™s playing the same game and this game is becoming dangerous.â€