On Tuesday, the IMF announced a new set of measures designed to provide short-term liquidity to ailing nations, the latest in a series of measures aimed at stemming Europe's sovereign debt crisis.
But "money alone is not going to resolve the problems" in Europe, where the "contagion is spreading" far beyond the so-called periphery, according to New York economics professor Nouriel Roubini. "The contagion has now gone viral, cross Atlantic and global."
In Europe, the problems of Greece, Italy and Portugal have now spread to Italy, Spain and beyond. "Most ominously," Roubini notes, credit spreads are widening on the sovereign debts of France and Belgian among other "core" nations. In addition, there are acute signs of stress in interbank lending such as LIBOR and the TED spread while many European banks are facing a shortage of dollars.
"It's a slow-motion train wreck," the famed economist says.
Given the financial and fundamental problems in Europe -- slow growth, too much debt and rising current account deficits -- Roubini believes there "at least a 50% probability" of a breakup of the eurozone in the next 2-to-3 years, which would almost certainly lead to a fast-motion train wreck.