The Eurozone Fundamental Problems Remain Unresolved

While the eurozone’s tail risks are lower, its fundamental problems remain unresolved: low potential growth; high unemployment; still-high and rising levels of public debt; loss of competitiveness and slow reduction of unit labor costs (which a strong euro does not help); and extremely tight credit rationing, owing to banks’ ongoing deleveraging. Meanwhile, progress toward a banking union will be slow, while no steps will be taken toward establishing a fiscal union, even as austerity fatigue and political risks in the eurozone’s periphery grow. - in project syndicate

 Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

A Bailout fatigue is Emerging in The Eurozone Core

....And bailout fatigue is emerging in the eurozone core. In Germany, the next coalition government looks set to include the Social Democrats, who are pushing for a bail-in of the banks’ private creditors, which would only exacerbate balkanization of the eurozone’s banking system; and populist parties throughout the core are pushing against bailouts for banks and governments alike.
Read more at http://www.project-syndicate.org/commentary/the-eurozone-s-unaddressed-problems-by-nouriel-roubini#hzlr5BAEWd6tckAM.99

The Eurozone will at best experience a continuing recession for a decade to come

Roubini forecast the eurozone to “at best” experience a continuing recession for a decade to come, a situation that would harm Swiss exporters and pile more pressure on the SNB to continue its euro spending spree. “The eurozone is no longer in the emergency room, but it is still in a chronically critical condition,” Roubini said. - at the Swiss Economic Forum in Interlaken

Roubini : L Shape stagnation in the Eurozone

Nouriel Roubini  :"...Well, in the case of Eurozone, five economies, three are still contracting, Spain, Greece and Ireland, two of them Portugal and Italy, are barely growing. So, it is not even a question of double dip they never got out of the first dip.


It is more like the shape of an L of stagnation like in the case of Japan in the longer term unless they solve their own problems. So the risk of double dip and continuation of recession is highest in the periphery of the eurozone. ..."
via www.economictimes.indiatimes.com

Roubini on The EU response to the crisis in Ireland

Nouriel Roubini  : "....my fear has been that unfortunately in the case of the eurozone and a number of insolvent or nearly insolvent countries in it, their problems may just not be of liquidity but also the amounts of debt in the private sector and the banks.


The robust backstopping of the financial systems by the governments has made them near-insolvent . So, provision of liquidity might not be sufficient. At some point down, there might be coercive restructuring of public debt of countries like Greece and Ireland.


And unfortunately, problems are now spreading to Portugal, possibly Spain and other parts of the eurozone. There is also problem of competitiveness. And now, restoring of not only large stocks of public debt but also private liabilities owned by organisations. ..."
via www.economictimes.indiatimes.com

Eurozone in danger on Implosion and Zero Growth

There is that risk, at least for the euro zone. Growth will fall towards zero. Even if that is perhaps not a real recession, it will feel like one. Greece was just the tip of the iceberg," "And the Americans too will run into the wall at some point if the carry on the way they are," Roubini said in the interview published in German by Swiss daily Tages-Anzeiger.

Roubini : The Eurozone faces Zero growth

Roubini At the Festival Economia in Trento, Italy

"There is that risk, at least for the euro zone. Growth will fall towards zero. Even if that is perhaps not a real recession, it will feel like one. Greece was just the tip of the iceberg," Roubini said recently in an interview with a Swiss journal "And the Americans too will run into the wall at some point if the carry on the way they are,"

Roubini : The Euro zone faces zero growth

Nouriel Roubini on France 24

Nouriel Roubini nicknamed Dr. Doom and lately Dr. Realist by CNBC , is a professor of economics at the Stern School of Business, New York University and chairman of RGE Roubini Global Economics, an economic consultancy firm . Prof. Nouriel Roubini A world-class economist who offers an unflinching look at the global meltdown and distinctive insights into its course going forward. His research on financial crisis in emerging economics has yielded a unique and now vindicated approach to future collapses. Roubini speaks on the global economic outlook and its implications for the financial markets. From his analysis of past collapses of emerging economies, he has identified common factors that support his predictions of crisis in the US and world markets. He has held several high-level advisory positions in the US government and international finance organisations, published numerous policy papers and books on key international macro-economic issues and is regularly cited as an authority in the media..Roubini speaks fluently English Italian Farsi Turkish and Hebrew . After receiving BA in political economics at Bocconi University in Milan northern Italy , and doctorate in international economics at Harvard University, he began academic research and policy making by teaching at Yale while also spending time at the International Monetary Fund (IMF), the Federal Reserve, World Bank, and Bank of Israel. Much of his early studies focused on emerging markets. During the administration of President Bill Clinton, he was a senior economist for the Council of Economic Advisers, later moving to the United States Treasury Department as a senior adviser to Timothy Geithner, who is now Treasury Secretary.

Nouriel Roubini on the Euro and The Eurozone

Economist Nouriel Roubini explains his view of the Euro Zone.