Monday, May 10, 2010

Roubini: Europe's $1T Bailout Still Has Conditions and Open Questions; Europe Was on Verge of Precipice

New York University professor Nouriel Roubini said European leaders realized they had to “get their act together” after weeks of delays agreeing a support package for debt-stricken nations threatened to destabilize the euro.

Bloomberg radio reported today that Roubini said that European nations were on the verge of a precipice, and "they realized they had to pull resources together, act together, otherwise the risk was the collapse of the euro zone, the collapse of the euro.”

“For the last few months, the European Union looked behind the curve, they couldn’t get their act together,”

“In the short run, it is going to calm the markets,” However, there is an “open question” on whether countries such as Greece, Spain and Portugal will be able to accelerate their budget deficit reduction plans".

“While money is available now on the table, it’s conditional on fiscal adjustment, structural reform,” “Whether they are going to be able to do it fast enough is an open question.”

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