Doxorubicin Hydrochloride Liposome, Bortezomib, and Dexamethasone in Treating Patients With Newly Diagnosed Multiple Myeloma

DISEASE CHARACTERISTICS: * Diagnosis of multiple myeloma based on the following criteria: * Major criteria * Plasmacytomas on tissue biopsy (1) * Bone marrow plasmacytosis (\> 30% plasma cells) (2) * Monoclonal immunoglobulin spike on serum electrophoresis IgG \> 3.5 g/dL or IgA \> 2.0 g/dL and kappa or lambda light chain excretion \> 1 g/day on 24-hour urine protein electrophoresis (3) * Minor criteria * Bone marrow plasmacytosis (10% to 30% plasma cells) (a) * Monoclonal immunoglobulin present but of lesser magnitude than given under major criteria (b) * Lytic bone lesions (c) * Normal IgM \< 50 mg/dL, IgA \< 100 mg/dL, or IgG \< 600 mg/dL (d) * Meets 1 of the following sets of diagnostic criteria: * Any two of the major criteria * Major criteria 1 and minor criteria b, c, and d * Major criteria 3 and minor criteria a or c * Minor criteria a, b, c, OR a, b, d * Measurable disease, defined as a monoclonal immunoglobulin spike on serum electrophoresis ≥ 1 g/dL and/or urine monoclonal immunoglobulin spike ≥ 200 mg/24 hours, or evidence of lytic bone disease * No nonmeasurable disease (i.e., non-secretory or oligosecretory multiple myeloma) * Symptomatic, newly diagnosed, and previously untreated multiple myeloma * No POEMS syndrome (i.e., plasma cell dyscrasia with polyneuropathy, organomegaly, endocrinopathy, monoclonal protein \[M-protein\], and skin changes) * No plasma cell leukemia PATIENT CHARACTERISTICS: * Karnofsky performance status 60-100% * Life expectancy \> 3 months * ANC ≥ 1,500/mm\^³ (≥ 1,000/mm\^³ if bone marrow is extensively infiltrated) * Platelet count ≥ 75,000/mm\^³ (≥ 50,000/mm\^³ if bone marrow is extensively infiltrated) * Hemoglobin ≥ 8.0 g/dL * AST and ALT ≤ 3.0 times upper limit of normal (ULN) * Serum bilirubin ≤ 2.0 times ULN * Creatinine clearance ≥ 30 mL/min OR creatinine \> 10 mL/min and \< 30 mL/min for patients with significant myelomatous involvement of the kidneys * Serum potassium ≥ lower limit of normal (LLN) * Serum sodium ≥ LLN * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective contraception * No prior malignancy within the past 5 years except basal cell or squamous cell skin cancer or carcinoma in situ of the cervix * No peripheral neuropathy ≥ grade 2 within past 14 days * No impaired cardiac function or clinically significant cardiac disease, including any one of the following: * Myocardial infarction within the past 6 months * New York Heart Association class II-IV heart failure * Uncontrolled angina * Clinically significant pericardial disease * Severe uncontrolled ventricular arrhythmias * LVEF below normal by ECHO or MUGA scan * ECG evidence of acute ischemia or active conduction system abnormalities * Screening ECG abnormality must be documented by the investigator as not medically relevant * No severe hypercalcemia (i.e., serum calcium ≥ 14 mg/dL \[3.5 mmol/L\]) * No poorly controlled hypertension, diabetes mellitus, or other serious medical or psychiatric illness that could preclude study treatment * No known HIV positivity or hepatitis B or C positivity * Baseline testing for HIV and hepatitis B or C is not required * No history of allergic reaction attributable to compounds of similar chemical or biological composition to doxorubicin, bortezomib, boron, or mannitol PRIOR CONCURRENT THERAPY: * See Disease Characteristics * No prior or concurrent anti-myeloma therapy except steroids * Prior prednisone for ≤ 4 days at a total of 400 mg (or an equivalent potency of another steroid) allowed * No concurrent corticosteroids (≥ 10 mg prednisone/day or equivalent) other than dexamethasone * More than 4 weeks since prior major surgery and recovered * Prior kyphoplasty with oncotherapeutic drugs allowed at the investigator's discretion * More than 4 weeks since prior immunotherapy, antibody therapy, or radiotherapy * More than 14 days since other prior and no other concurrent investigational drugs