Wednesday, April 28, 2010

Latest Roubini: Greece in Near Insolvency, Restructuring is Necessary, Massive Bank Losses and Contagion

Nouriel Roubini mirrored Park's comments earlier today on his latest interview, on CNBC.

Mr. Roubini says that the current European bailout plan for Greece is not going to work because Greece is nearly insolvent.

This is exactly the same that Danielle Park said earlier today! Please see her interview (it's a must see. Ms. Park tells it as it is).

Roubini added as well that "A restructuring of its debt is going to be necessary,"

Moreover, Roubini said that a collapse of the Greek economy could have domino effect among other weak eurozone countries including Portugal, Spain, Italy and Ireland.

“Suppose you have a disorderly collapse of Greece, two things will happen":

  • "Financial institutions holding Greek debt—mostly European—will have massive losses".
  • "a contagion from Greece to Portugal to Spain to Italy to Ireland will have a domino effect."

"Eventually, debt increases and risk aversion is going to drive down the asset prices globally, as it happened yesterday and today.”

Watch video:

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1 comment:

Crash said...

Sound cuts out after the first three seconds: "Spain in now the third European countr..."

Off to CNBC's site to see if they have the sound.

Financial TV

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