In a series of cynical tweets, Nouriel Roubini argues that everyone’s worst case scenario for Italy is inevitable.
He avows that, because the European Central Bank is legally prevented from being the lender of last resort by the EU treaties, a plan to leverage the European rescue fund—the European Financial Stability Facility—using a special purpose investment vehicle (SPV) “will not fly.”
So the only option for Italy is debt restructuring.
Photo: @Nouriel on Twitter
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