Economist Roubini Rattles Davos
During an interview at the Davos World Economic Forum, economist Nouriel Roubini, aka Dr. Doom, said that without “massive monetary easing” from the European Central Bank the Eurozone is not likely to escape its continuing debt crisis. Greece is the…
During an interview at the Davos World Economic Forum, economist Nouriel Roubini, aka Dr. Doom, said that without “massive monetary easing” from the European Central Bank the Eurozone is not likely to escape its continuing debt crisis. Greece is the problem right now, but as long as the Eurozone follows its current austerity policies the threat to other countries gets worse.
Roubini told CNBC, “There’s a severe recession in the periphery of the euro zone. Less austerity, more growth, that’s what the euro zone needs today.” The economist also noted that the euro needs to weaken by 20%-30% to help the weaker Eurozone countries get out of their debt crisis. So far, Germany — the strongest of the Eurozone economies — has succeeded in resisting any devaluation of the euro.
Roubinin also said that simply printing more euros won’t solve the Eurozone’s problems.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.