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Get ready for a runaway recovery?

Economist warns of new bubbles

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SAN FRANCISCO -- The financial crisis is over and the economy is growing at a fast enough clip that the Federal Reserve and other policymakers have already fallen behind the curve in preventing the next asset bubble, economist Ken Rosen said today.Rosen, the chairman of the University of California, Berkeley's Fisher Center for Real Estate, acknowledged that most economists are still more worried about deflation than inflation.In an hour-long presentation as the keynote speaker at the Fisher Center's 15th annual real estate conference, Rosen clicked through a stack of statistics and forecasts to make his case that it's time for the Fed to raise short-term interest rates."The financial crisis is over," Rosen said, but the Fed appears to be committed to keeping short-term rates at or near zero for at least six months. "I think short-term rates should be 2 to 3 percent today -- we are encouraging asset bubbles in the stock market, bond markets and global real estate."W...