Maybe this says something about the state of the US financial media… Normally when we see an interview with Nouriel Roubini we get a lot of pronouncements about doom and double dips and crashes and whatnot.However in the new Der Spiegel interview we actually get quiet, non-soundbite-y answers to some non-cliche questions.
Here are a few key points:
- The US is not like the EU for one key reason: While California is in a similar state to Greece, a California collapse wouldn’t cause the collapse of the dollar, whereas the collapse of one of the PIIGS could destroy the common currency.
- Germany has been intransigent and not helpful in helping solve the debt problem, and its aggressive focus on exports has been detrimental.
- A split euro (weak/strong) makes no sense, since no monetary union has ever been comprised just of weak players.
- The solution is this: Germany needs to allow for cheap money and a bigger bailout fund in exchange for much stricter penalties on fiscal irresponsibility.
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