Fergusson on European debt crisis

Niall Fergusson has been interviewed on  Bloomberg TV on the looming debt crisis. In short, Fergusson sees a massive crisis coming due to failing politcal resolve to master the debt crisis: PIIGS debtor are not ready to take on any more austerity measures whereas northern European politicians do not see any urgency to act quickly. The Greek economy is not big, but it has the potential to draw in bigger economies like Spain or Italy. As a result, the crises will get messier to resolve only because politicians are behind the curve.



Greek needs to restructure debts soon (before they run out of money). An exit of the EMU will be the ugliest of all possible solutions.