"The stock market is a bit ahead of the real macroeconomic and financial news," said Nouriel Roubini, a professor at NYU's Stern School of Business and the chairman of consulting firm Roubini Global Economics. "We'll have some major banks going belly up that will need to be taken over."

He's calling the recent advance in stocks a "bear-market rally," and expects government stress tests to show that some banks need to be taken over and have their good and bad assets separated before being sold to the private sector. He estimates total government loans and securities losses will hit $3.6 trillion.

Meanwhile, he expects Treasury yields to remain low as investors seek safety.

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