Monday, November 22, 2010

Roubini : Spain too big to fail and too big to be bailed out

Nouriel Roubini : "You can try to ring fence Spain. And you can essentially try to provide financing officially to Ireland, Portugal, and Greece for three years. Leave them out of the market. Maybe restructure their debt down the line...But if Spain falls off the cliff, there is not enough official money in this envelope of European resources to bail out Spain. Spain is too big to fail on one side—and also too big to be bailed out."
"The next one in line is going to be Portugal. Due to the severity of Portuguese debt problems, Portugal is going to lose market access—and that means they are going to require IMF support as well."
"Now you have a bunch of super sovereigns— the IMF, the EU, the eurozone—bailing-out these sovereigns...There's not going to be anyone coming from Mars or the moon to bail-out the IMF or the Eurozone." Roubini said recently in a CNBC interview

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