Roubini Says Banks to Plunge Irish Into ‘Disastrous’ Crisis

Ireland may be plunged into a a “disastrous” sovereign debt crisis within three years as the cost of rescuing its banks mounts, Nouriel Roubini, who predicted the global financial crisis, said.

Ireland’s government has injected 46 billion euros ($65.5 billion) to bailout the country’s debt-laden financial system, after a decade-long real estate bubble collapsed in 2008. The banks need another 24 billion euros in capital, and the state has pledged to provide whatever they can’t raise alone.