Nouriel Roubini, the famous American economist, says that the eurozone should put up with the fact that some debt-ridden members may leave it. Moreover, he doesn’t deny a collapse of the Euro currency.
Not so long ago he criticized the steps taken by the European authorities, saying that while the ECB keeps expanding the EFSF, the debt problems of such countries as Greece, Portugal , Spain , Ireland and Italy remain urgent. He is sure that sooner or later those countries will need debt restructuring again.
He says that the only way to resolve the eurozone debt problem is to make the 5 countries leave the eurozone. Roubini assumes this will be beneficial for all because the PIIGS will no longer be able to rely on endless loans. They will have to stimulate their export and production in order to boost the GDP. At the same time, the remaining members of the eurozone will have to focus on stimulating their domestic demand.
According to , the EUR futures (EURUSD) has consolidated below 1.3200 and is currently being traded within the 1.3150-1.3200 price range. The trading volume is low. However, the bears are clearly dominating the market right now.
