ROUBINI: 'There Can Only Be One Roll Of The Dice For A Country As Large As Spain'


Photo: ap

Nouriel Roubini, along with Megan Greene of Roubini Global Economics published an op-ed in the Financial Times regarding Spain’s bank bailout.He offers a plan:

Ideally, a bailout for Spanish banks should come immediately and in the form of direct capital injections from the EU bailout funds. Germany remains staunchly opposed to this, as it would mean giving up the stick of conditionality and feeding Spain the funding carrot. Such an option is also resisted by the Spanish authorities as the EU taxpayer will in effect take over their banks.

Instead it looks like a bailout for Spanish banks has been postponed until the very last minute. The cost of a bank bailout would then be foisted on to the Spanish sovereign’s balance sheet.

Bank bailouts on this scale may well bring the Spanish state to its knees…

Regardless of how the bailout is done, it mut be done right.

If things go wrong in Greece, Portugal and Ireland, a second bailout is affordable. But there can only be one roll of the dice for a country as large as Spain.

Note that that language actually came from Megan Greene, who used the same phrasing about getting one dice roll last April.

Read the whole op-ed at

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