Rocky Vega

The euro isn’t catching any breaks these days. It’s today fallen below $1.23, its lowest level since April 2006. NYU professor and Roubini Global Economics chairman Nouriel Roubini believes that the crisis in Europe is just getting started with Greece and more problems are already cropping up.

Bloomberg reports:

“The European Union’s 750 billion-euro ($931 billion) rescue package to stop contagion from Greece hasn’t calmed the markets while questions remain about whether governments are strong enough to implement the austerity measures required, Roubini said. The European Union said today it has transferred the first instalment of emergency loans to Greece, one day before 8.5 billion euros of bonds come due.

“Markets remain concerned about the solvency of some European countries as there is ‘significant economic and financial trouble in the eurozone,’ Roubini told the BBC’s ‘Today’ program. The recent riots in Greece in response to fiscal cuts have fueled doubts about some European governments’ ability to solve these problems, he said.

“’There’s a question mark whether we can be confident the government is going to be strong enough to do the fiscal austerity,’ Roubini said.”

The bailouts have begun to rain down on Greece from the European version of Bernanke’s helicopter, and there should be motivation for the austerity measures to take hold. Yet, the citizens are fighting their diminished government support tooth and nail as they’ve grown accustomed over time to expecting handouts. It doesn’t bode well for the rest of Europe’s already shaky states — or the European Union itself — if Greece manages to fumble this bailout.

To read more of Roubini’s thoughts visit Bloomberg’s coverage of how the Greek crisis is only the tip of the iceberg.

Best,

Rocky Vega,
The Daily Reckoning

Rocky Vega

Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.

  • http://www.aviongoldcorp.com/ Cosmo Hippie

    Short and sweet, as I like it.

    Great time to be buying gold stocks.

Recent Articles

5 Min. Forecast
OPEC Meeting Update: Beware the Oil Price Wars

Dave Gonigam

So much for Americans existing "at the mercy of OPEC." According to the Financial Times, U.S. dependence on oil imports from the OPEC countries is now its lowest since May 1985. Dave Gonigam explains how this is affecting global oil prices, and what to expect from this week's OPEC meeting. Read on...


Bill Bonner
Jonathan Gruber: Right About Obamacare. Wrong About the American Voter.

Bill Bonner

Poor Jonathan Gruber is getting little support or appreciation. Instead of being thanked for helping us understand how Obamacare really works, he is being assailed from both the right and the left. Today, Bill Bonner explains why Mr. Gruber had it right... except about the "stupidity of the American voter." Read on...


A Huge First Step in Reversing Paralysis

Stephen Petranek

Advancements in technology, especially biotechnology, are happening at an amazing rate. And that's opening up incredible opportunities for astute, knowledgeable investors who - with the right guidance - can make serious gains in record time. Stephen Petranek explains...


Why You Should Be Buying Solar Stocks With Both Hands

Greg Guenthner

Oil's recent slump has given you a unique opportunity to pick up your favorite solar stock at a bargain-basement price. So if you're looking to double your money over the next 18 months, you need to quit staring at gas prices -- and start paying attention to solar stocks. Greg Guenthner explains...