Nouriel Roubini we are facing serious sovereign debt problem because we have socialized many of the private losses
May 06, 2010 — RGE Economist Nouriel Roubini aka Dr Doom believes Greece is the first symptom of a larger problem
Nouriel Roubini :"My interpretation is that we are at the next stage of this global financial crisis , the first stage was driven by aggressive borrowing and accumulation of debt in the private sector households and financial institutions and now we decided to socialize many of these private losses and there is a massive re-leveraging of the public sector with budget deficit of the order 10% of the GDP and doubling of public debt in most advanced economies "
Roubini"In my view Greece is insolvent their public debt is 120% of GDP their bufget deficit 13.6% of GDP , there is no country cando such a fiscal adjustment to reduce the debt to sustainable level , so I propose that Greece should be restructured there have been episodes of restructuring of public debt in a number of emerging market economies in the last decade , it can be done , instead of using official support to waste money to try to allow some people the exit it's better to restructure this debt it is better to restructure the debt..."
