Greece is just the 'tip of the iceberg', Nouriel Roubini warns
May 01, 2010
– Comments (17)
I completely agree
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And Roubini is focused on the rest of Europe, and rightly so. The crisis will occur in the several other European nations next. But the crisis will culminate here. This was ground zero for most of the shennanigans and irresponsible economic and monetary policy and the soverign debt crisis will come back here.
In the short term the US Dollar (and ironically even US treasuries) will be the "beneficiaries", .... wait not sarcastic enough .... """"""""""""""beneficiaries"""""""""""""" of a European soverign debt crisis. But that just makes the US soverign debt crisis an even more tragic Epic Fail as people look for safety in the US before its own debt collapse.
Before this crisis is done, there are very few fiat currencies that will offer protection. And absolutely none of them are the US Dollar.
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Greece is just the "tip of the iceberg” of a sovereign debt crisis that has the potential to derail a global recovery, Nouriel Roubini has warned.
Published: 6:00AM BST 29 Apr 2010
http://www.telegraph.co.uk/finance/economics/7648775/Greece-is-just-the-tip-of-the-iceberg-Nouriel-Roubini-warns.html
[excerpt]
Nouriel Roubini, professor of economics and international business at New York University, testifies before the Joint Economic Committee October 30, 2008 on Capitol Hill in Washington, DC. Nouriel Roubini was one of the few to anticipate the scale of the crisis
Professor Roubini, the New York-based academic who was one of the few to anticipate the scale of the financial crisis, told a panel in California that the buildup of debt is likely to lead to countries defaulting or resorting to inflation to ease the burden on their populations.
“While today markets are worried about Greece, Greece is just the tip of the iceberg,” Roubini told the Milken Institute Global Conference in Beverly Hills, California. "The thing I worry about is the buildup of sovereign debt.”
Although Greece's misreporting of the scale of its own debt has helped shatter investors' faith, the southern European country is not alone in its struggle. The depth of the property bust in both Spain and Portugal has prompted the ratings agency Standard & Poor's to downgrade the creditworthiness of both.
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