Nouriel Roubini, along with Megan Greene of Roubini Global Economics published an op-ed in the Financial Times regarding Spain's bank bailout.
He offers a plan:
Ideally, a bailout for Spanish banks should come immediately and in the form of direct capital injections from the EU bailout funds.
Germany remains staunchly opposed to this, as it would mean giving up the stick of conditionality and feeding Spain the funding carrot.
Such an option is also resisted by the Spanish authorities as the EU taxpayer will in effect take over their banks.
Caveat:
If things go wrong in Greece, Portugal and Ireland, a second bailout is affordable. But there can only be one roll of the dice for a country as large as Spain.
