Tuesday, May 11, 2010

Roubini on The $1 Trillion EU rescue Package to Greece

Roubini Discusses $1 Trillion European Loan Package

Nouriel Roubini : The IMF is expecting three more years of recession in Greece most likely you will have recession in Spain in Portugal in Italy and the question is political again : can you afford have several years of recession and deflation there may be at some point a backlash against it three of these countries have also lost competitiveness in the last few years , they are losing market shares to China and Asia because their exports are labor intensive then for a decade their wages are growing faster than the productivity , and the final nail in the coffin was the appreciation of the Euro between 2000 and 2008 , so even if they stabilize their public debt how are they going to reduce their larger currency deficit..., it is going to be ugly in terms of fiscal austerity in terms of structural forms in terms of anemic growth if not recession therefore there is money on the table but it is all conditional on doing very painful sacrifices , I feel that some countries like Greece are not going to be able to do it , that eventually they are going to have a restructuring of public debt .....
May 11 (Bloomberg) -- New York University professor Nouriel Roubini, chairman of Roubini Global Economics LLC, talks with Bloomberg's Carol Massar and Matt Miller about the $1 trillion European loan package to help stop the sovereign-debt crisis. (This is an excerpt of the full interview. Source: Bloomberg)

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Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.