Saturday, June 30, 2012
Roubini on German leadership
Roubini : "There is this gap between them saying we don't want to take all this credit risk of backstopping of $3 trillion of Spanish and Italian debt. We don't want to take all the credit risk of backstopping all the deposits of the euro zone. But then the other side says, unless you do something about it, in spite of our fiscal effort, the spreads are so high, the disintegration fragmentation of the banking system is becoming worse, and therefore we're going to end up in a complete cliff. The German one side the one guarantees that these guys do enough reform and austerity, the other side says we're doing it, but spreads are so high that it's become unsustainable."