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.
“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.
Rocky Vega,The Daily Reckoning
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.
Short and sweet, as I like it.
Great time to be buying gold stocks.
Everyone knows how comically terrible government accounting is, but few people may realize just how bad it's gotten... This infographic shows how trillions of dollars of government money has gone missing money over the last several years. And what's worse... that no one seems to care where it went...
It's amazing what some people will do out of sheer boredom. Investors, for example, will often throw money around, simply because they have nothing better to do - as if making MORE moves automatically translates to MORE money. Today, Chris Mayer explains why this emotion is so dangerous and how staving it off can save you a ton of money...
When a big company IPOs, investors can hardly contain their excitement. In a flash of exuberance, they throw money at a company they've already decided is worth something... even if the market hasn't made up its mind yet. Today, Jonas Elmerraji explains how one simple word can change the fate of every IPO investor. Read on...
Think it's impossible to escape the throes of Obamacare? Think again. Today, Chris Campbell relays the story of one man was able to get out from under the (un)Affordable Care Act, and how you can do it too. Don't see another doctor, take another pill, or shop around for better medical insurance until you read his story...
For the last few days, the market has been buzzing with excitement over the Alibaba IPO. Well, the day is finally here. And while some investors line up with their lotto tickets, ready to snatch it up no matter what the price, Greg Guenthner suggests a slightly more restrained approach. Read on...