Roubini Maps Out Nightmare Scenario of Domino Debt Collapse in Europe

By: Ash Bennington  CNBC.com

"We have too much private debt in the case of Ireland," according to Nouriel Roubini.

But the nub of the crisis is this: "We have decided to socialize the private losses of the banking system. Now you have a huge increase in public debt—going from 7 percent to 100 percent of GDP. Soon it will be 120 percent." And, turning more broadly to the rest of Europe, "Greece is already at 120 percent."

Roubini believes that further attempts at intervention have only increased the magnitude of the problems with sovereign debt. He says, "Now you have a bunch of super sovereigns— the IMF, the EU, the eurozone—bailing out these sovereigns."  Continued....

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