"There is a wall of liquidity…chasing assets," Roubini told "Squawk Box."

"Now we are in the mother of all carry trades," he added.

Asset prices have been inflated by the cheap funds but the dollar cannot keep falling forever, and there could be "a market crash all over the world" when the currency's course is reversed.

But this will not happen too soon as the real economy is still very weak and the Federal Reserve is likely to keep interest rates close to 0 percent for longer, Roubini added.

"The reality is that the dollar is the funding currency of the carry trades. Because of that the dollar weakness is going to continue for a while."

He reiterated his view that the recovery is likely to be anaemic, 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.

Japan and Europe are likely to grow by less than 1 percent, he said.

"The (stock) markets are pricing in a V-shaped recovery," Roubini said. "If the data surprise on the downside then there is going to be a significant correction."

The price of oil may also be among the assets that will fall.

"It seems to me that this rally in oil prices is way ahead of the economy," Roubini said.

More Trouble for Banks

More losses may be ahead for banks, as the residential property sector fell 30 percent and the commercial property sector is 40 percent down in the crisis, he added.