Roubini: A Greek Bailout Solves Nothing Since Spain Is The Real Time Bomb That Will Destroy The Euro

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As the world remains fixated on the financial problems of Greece, Nouriel Roubini warns that Spain is actually a far larger and deadly financial time bomb.

The Spanish economy is so enormous relative to Greece that a major financial crisis there would easily destroy the euro currency union:

Irish Independent: "Down the line — not this year or two years from now — we could have a break-up of the monetary union. It’s a rising risk," he said. "The eurozone could drift, essentially with a bifurcation, with a strong centre and a weaker periphery, and eventually some countries might exit the monetary union," he warned.

For all the focus on Greece, however, he also said that Spain may eventually pose an even bigger threat to the eurozone because it is the region’s fourth-largest economy and has higher unemployment and weaker banks. "If Greece goes under, that’s a problem for the eurozone. If Spain goes under, it’s a disaster," he said.

If Roubini’s warning is true, it would mean that a Greek backstop by Europe solves nothing. The euro as a currency would still have massive threats ahead regardless.