Italy is almost broke, says ‘Dr Doom’
According to Professor Nouriel Roubini, Italy’s huge public debt risks are spinning out of control. “I am very worried about the new Italian government. Things are going to worsen and the debt dynamics may become unsustainable,” warns Roubini. He said at the Ambrosetti forum that when European Central Bank will be halting quantitative easing by the end of the year, it will remove a crucial buyer of Italian bonds. This comes at a time when US rates are ratcheting up fast and the era of abundant liquidity is coming to an end.
Prof Roubini is an economist at New York University and founder of Roubini Global Economics. His gloomy predictions have earned him the nickname ‘Doctor Doom’. He was one of a few people who correctly predicted the financial crisis of 2008. Telegraph