NOURIEL ROUBINI BLOG tracks the media appearances of Dr Nouriel Roubini his interviews articles debates books news speeches conferences blogs etc..Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
Wednesday, November 9, 2011
Roubini : The worst case scenario for Italy is inevitable.
"Italy primary balance is barely >0 while a 5% of GDP surplus needed just to prevent debt/GDP ratio to rise above 120%. Clearly unsustainable" says Dr Doom Nouriel Roubini via Twitter : "Italy is TBTF Too Big to Fail but it is also TBTS Too Big To Save , A Coercive debt restructuring , Maturity extension with Par Bond will become unavoidable soon " he added "With real rates at 4% & GDP growth at 0% (better than current data) Italy still needs a 5% of GDP primary surplus to stabilize debt at 120% " "As in Greece coercive "voluntary" debt restructuring (Par/Discount) in Italy would NOT trigger CDS based on ISDA definition of credit event" He explained
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Italy
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