Roubini at Maximou to tell us to switch back to the drachma!

I honestly don’t understand the reason for today’s meeting between the PM and financial mogul Nouriel Roubini, who goes by the nickname “Cassandra of the markets”.

The two men have a long personal relationship and some of us might remember the famous line from their last (?) Davos meeting where Yiorgos Papandreou had reprimanded the financier saying, “you should not analyze if you do not know the full details of an economy…”

But even today, as reported from a restricted event held in Athens which included executives from the business and banking sector, Nouriel Roubini insisted that the only solution for Greece is exiting from the euro, returning to the drachma and if this is impossible, the restructuring of the debt.

In paricular, Roubini esimated that the only solution for the restoration of the Greek economy is the devaluation of its currency, which means leaving the euro zone and going back to the drachma. However, he explained that this is not feasible since it presupposes withdrawal from the EU, and pointed out that in such an eventuality, the devaluation of the currency would rise to 50%.

So the final solution for Greece is the controlled restructuring of the debt with an extension of the repayment period.