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'Dr. Doom' Expects End to Stock 'Bubble'

The stock market, which hit new all-time highs on Wednesday, could experience a crash within two years, bearish economist Nouriel Roubini said on CNBC.

"It could go on for another year or two," he said, speaking from the SALT Conference in Las Vegas.

"I see frothiness going to end up in nasty boom and bubble in asset prices, followed by crash and a bust, not this year, not next year, two years from now."

(Read More: Dow, S&P Hit New All-Time Highs)

On "Fast Money," Roubini cited a couple of factors: "Growth is slow. Earnings growth is also slowing down. Top line and bottom line are not as good as they used to be, but margins are high. They could correct somehow over time.

"But you have the gravitational forces of a slow economy leading eventually to correction, but then the levitational forces of QEs, zero policy rates, more money coming in the market, not just from the U.S. but other economies, is going to levitate asset prices."

(Read More: 'Cash Is Trash Right Now': Strategist)

Roubini said that those conditions could lead to "a generalized credit and equity and asset bubble next year or two, followed by a crash."

But, he added, "as long as the economy grows between 1½ to 2 percent and you have easy money, this market can go higher."

Trader disclosure: On May 8, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long JPM; Jon Najarian is long MSFT; Jon Najarian is long CLF; Jon Najarian is long NUE; Jon Najarian is long OC; Jon Najarian is long XLY; Jon Najarian is long UVXY;

For Colin Gillis
Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report; Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Microsoft within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Microsoft; Lead or Co-manager: BGC Financial LP and/or its affiliates, has not acted as lead or co-manager in a public offering of equity and/or debt securities for Yahoo within the last 12 months. BGC Financial LP and/or its affiliates has not received compensation for investment banking services in the last 12 months from Yahoo.


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