Bortezomib, Doxorubicin Hydrochloride Liposome, and Thalidomide as First-line Therapy in Treating Patients With Previously Untreated Stage I, II, or III Multiple Myeloma

DISEASE CHARACTERISTICS: * Diagnosis of stage I, II, or III multiple myeloma requiring therapy * No prior systemic therapy for multiple myeloma * Patients who have received steroids or radiotherapy for cord compression or spinal cord disease are eligible for this study * Patients who have received 1 prior course of antimyeloma therapy may be enrolled at the investigator's discretion provided disease progression is not noted PATIENT CHARACTERISTICS: Inclusion criteria: * Karnofsky performance status 60-100% * Platelet count ≥ 75,000 cells/mm\^3 (\< 75,000 cells/mm\^3 secondary to extensive bone marrow disease allowed at the PI's discretion with appropriate transfusion support) * ANC ≥ 1,000 cells/mm\^3 * Hemoglobin ≥ 8.0 g/dL (\< 8 g/dL secondary to extensive bone marrow disease allowed at the PI's discretion with appropriate transfusion support) * Creatinine clearance \> 20 mL/min * AST and ALT ≤ 2 times upper limit of normal (ULN) OR ≤ 3 times ULN (in the presence of liver metastases) * Alkaline phosphatase ≤ 2 times ULN OR ≤ 3 times ULN (in the presence of liver metastases) * Total bilirubin ≤ 2 times ULN OR ≤ 3 times ULN (in the presence of liver metastases) * Ejection fraction ≥ 50% by MUGA or 2-D echocardiogram * Negative pregnancy test * Fertile patients must use at least 1 highly effective and 1 additional effective contraception method 4 weeks prior to, during, and 3 months after completion of study therapy * HIV-negative * Must have sufficient mental capacity to understand the explanation of the study and to provide informed consent * Willingness and ability to comply with the FDA-mandated S.T.E.P.S. program Exclusion criteria: * Pregnant or lactating * Active, serious infections uncontrolled by antibiotics * Any medical condition or reason that, in the investigator's opinion, makes the patient unsuitable to participate in this clinical trial * History of hypersensitivity reactions attributed to a conventional formulation of doxorubicin hydrochloride or the components of doxorubicin hydrochloride liposome or bortezomib, boron, or mannitol * Any of the following conditions: * History of uncontrolled New York Heart Association class II-IV heart disease or clinical evidence of congestive heart failure * Myocardial infarction within the past 6 months * Uncontrolled angina * Severe uncontrolled ventricular arrhythmias, ECG evidence of acute ischemia, or active conduction system abnormalities * Peripheral neuropathy ≥ grade 2 PRIOR CONCURRENT THERAPY: * See Disease Characteristics