Nouriel Roubini spoke to CNBC this morning about the eurozone.
- 0:50 Huge increase in public debt in Ireland. We now have a bunch of “super sovereigns,” in the IMF and EU. “There’s not going to be anybody coming from Mars or the moon to bailout the IMF or eurozone.” At some point, we need restructuring, or you’ll break the back of the government.
- 2:00 The next one in line will be Portugal. But Spain is the real elephant in the room. If Spain falls off the cliff, there is not enough money out there right now to bail it out.
- 2:45 Spain is too big to fail on one side and too big to be bailed out. Debt and liabilities are huge, a mix of public and private sector.
- 3:15 Italy is OK, but France is paradoxical. France still has serious structural problems.
- 4:10 For a small change in France you have huge resistance to a little change. There is going to be way more down the line, and that’s what the danger is.
- 4:50 The bond vigilantes are awake in the eurozone, but they’re not awake in the U.S.
- 6:45 China should be letting their currency revalue, like Bernanke says.
- 8:00 There’s about zero per cent chance of any structural adjustment in Congress.
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