CNBC spoke to Nouriel Roubini this morning about the situation in the eurozone.
- 0:40 Don’t think there will be QE3. Growth is ok, inflation is rising, and new members are more hawkish. Don’t expect a rate hike until 2012.
- 1:25 Worried about Europe’s periphery, in the context of an ECB rate hike. Worried this is going to damage countries like Ireland, Greece, and Portugal further.
- 2:10 Not sure this latest Irish bailout for banks will be enough, and the costs will break the back of the Irish government. The Irish government needs to write down senior debt. Can’t keep socializing losses; can’t keep turning bank debt into sovereign debt.
- 3:00 Fed exit threatens the equity market; but increases in prices also pose an imminent threat.
- 4:10 There is more uncertainty in the world right now due to global crises; this usually leads to a decline in consumer spending, which is a worry for companies.
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