Monday, November 29, 2010

Nouriel Roubini : Portugal likely to need bailout

Nouriel Roubini : Portugal likely to need bailout
Portugal is increasingly likely to need an international bailout after Ireland , Re-known economist Nouriel Roubini told on Monday 29 November the Portuguese daily Diario Economico. "....If things get out of control as appears to happen in Portugal must do everything up now to improve the situation, "says Dr. Nouriel Roubini aka Dr. Doom .".....It is becoming increasingly likely. On the one hand, there are differences between Ireland and Spain which have a huge housing bubble burst and the enormous loss of their financial systems, especially Ireland. In Portugal, basically, the problems are not as severe as those of Greece, but are very similar to those of Greece, in that they were driven by fiscal policy lapses and problems in the private sector that forced the state to intervene through nationalizations .What is common to all peripheral European countries - Greece, Ireland, Spain, Portugal and Italy - are huge deficits, huge amounts of debt, loss of competitiveness that started ten years ago or more, when these countries have lost market export to other countries with cheaper products in China, in emerging markets in Asia, Central Europe, Turkey ... And then the sharp appreciation of the euro between 2002 and 2008. Now, not only is the deficit and debt to accumulate, but also a series of problems and bad deals in the private sector, with huge deficits in their accounts. They all lost competitiveness...." he added

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