Tags: Roubini | Europe | Train | Wreck

Roubini: Europe Is a ‘Slow-Motion Train Wreck’

Wednesday, 09 May 2012 08:49 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The European economy resembles a “slow motion train wreck” that will end with Greece leaving the eurozone, says New York University economist Nouriel Roubini.

In recent elections, Greece's leading political parties failed to muster enough votes to form a coalition government that would favor staying the course with austerity measures in exchange for bailout money.

Calls to scrap austerity are growing, even if such policies mean shut off the flow of bailout money, which is roiling currency and stock markets worldwide.

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown

"Europe will be lucky if it ends up in stagnation like Japan for the next 10 years," Roubini tells CNBC.

Still, investors shouldn't stock up on cash and hide, at least here in the U.S.

Roubini says he's 70 percent invested in global stocks, half of that in U.S. indices, and 30 percent in cash, CNBC adds.

The European Commission, the European Central Bank and the International Monetary Fund are set to disburse a tranche of bailout money to Greece in June, although fears are growing the country won't have a coalition government set by then.

Greece's left-wing Syriza party is working to form a government, and the party's leader Alexis Tsipras has said he opposes sticking with austerity measures, which include layoffs and pension reforms.

Some high-ranking Greek officials point out the country is growing closer to leaving the currency zone.

"If we say no to everything, we leave the eurozone," Gikas Hardouvelis, economic advisor to outgoing Prime Minister Lucas Papademos, told Greece's Skai Radio, according to the AFP newswire.

"We have seen the reactions of European leaders... The only thing they are saying is that Greece is heading towards the exit of the euro," Hardouvelis adds.

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown


© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Reich: Joining Middle Class Should Not Require 4-Year Degree

Tuesday, 16 Sep 2014 20:53 PM

Many believe a four-year college degree is a ticket to a middle-class lifestyle, but former Labor Secretary Robert Reich . . .

Short-seller Fleckenstein: 'Stock Market More Crash-Prone Than Ever'

Tuesday, 16 Sep 2014 20:33 PM

Many Wall Street strategists have raised their stock-market targets in recent days, as major indices continue to notch r . . .

Calpers Sticks with Commodities after Dropping Hedge Funds

Tuesday, 16 Sep 2014 19:11 PM

Top U.S. pension fund Calpers is sticking with commodities, an asset class known for volatile markets and returns, despi . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved