Most investors follow the same strategy of borrowing in dollars and investing in assets across the world and when the greenback's downward trend reverses, there may be a crash in global assets, Nouriel Roubini, Chairman, RGE Monitor, told CNBC Monday.
"There is a wall of liquidity…chasing assets...we are in the mother of all carry trades," he said.
He reiterated his view that the recovery is likely to be anemic, forecasting growth of between 1 percent and 2 percent for the US in the next two years compared with the country's potential for 3 percent annual growth.
