Roubini : Greece needs maturities stretching orderly solution

Discussion in 'Wall St. News' started by ASusilovic, Jun 11, 2010.

  1. New York University Professor Nouriel Roubini said June 4 that an orderly restructuring of Greece’s public debt in the next 12 months may be necessary to avoid “massive losses” for the financial system.

    Orderly Plan

    He recommended stretching the maturities of the country’s debt by five to 10 years, capping the interest rate at a below- market level and maintaining the face value of the bonds at par to limit writedowns for banks. Further declines in the euro would also help sustain Europe’s economies, he said.

    Roubini, who predicted the global financial crisis, also remained gloomy on equity markets heading into a rally that lifted the Standard & Poor’s 500 Index by 80 percent last year.

    Roubini might be right on orderly Greece restructring, but plain wrong about equity markets...:cool: