September 19, 2011

Is Nouriel Roubini One of the "Conspiracy Theorists" Now?

Either Nouriel is a conspiracy theorist now - OR - you no longer have to be a "conpiracy theorist" to safely point out that the banks are economically raping entire nations and disguising the rape as a "Bailout".  In his defense, on the other hand, he used the terminology "large sweeteners" as a euphimism for rape.  Guess they'll let him keep his professorship at NYU.

EconoMonitor : Nouriel Roubini's Global EconoMonitor » Greece Should Default and Abandon the Euro

Greece must now begin an orderly default, voluntarily exit the eurozone and return to the drachma.

The recent debt exchange deal Europe offered Greece was a rip-off, providing much less debt relief than the country needed. If you pick apart the figures, and take into account the large sweeteners the plan gave to creditors, the true debt relief is actually close to zero. The country’s best current option would to reject this agreement and, under threat of default, renegotiate a better one. Yet even if Greece were soon to be given real and significant relief on its public debt, it cannot return to growth unless competitiveness is rapidly restored. And, without a return to growth, its debts will stay unsustainable. Problematically, however, all of the options that might restore competitiveness require real currency depreciation. 

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