♦♦♦
"It's Going To Be Ugly"
(Photo: Greek anti-austerity riots in May 2010)
Economist Nouriel Roubini, formerly known as "Dr. Doom" for his predicting the sub prime mortgage crisis, reviews the EU, ECB, IMF Bailout of Greece, weaker EU countries, the EU financial system, and the Euro itself.
New York University Economic Professor Roubini questions 1) if Greece and other similar countries have the political will to make the fiscal sacrifices necessary, 2) if there is the political will to raise taxes and cut spending, and 3) these countries have lost market share and competitive advantage to Asian countries. In addition the appreciation of the Euro over the past years places the weaker countries at a competitive disadvantage.
Mr. Roubini notes that the IMF predicts Greece, Portugal, Spain, and Italy will have three more years of recession, which amplifies the fiscal austerity measures they must implement. He thinks these countries won't be able to do this and will eventually have to restructure their sovereign debt and perhaps even exit the EU.
Mr. Roubini notes that the IMF predicts Greece, Portugal, Spain, and Italy will have three more years of recession, which amplifies the fiscal austerity measures they must implement. He thinks these countries won't be able to do this and will eventually have to restructure their sovereign debt and perhaps even exit the EU.
(Bloomberg Video)
♦♦♦
No comments:
Post a Comment