Nouriel Roubini has ruled out anyone leaving the euro zone within the next one or two years but believes that could all change over the next five years.
Speaking to the Independent newspaper in London the man who CNBC viewers dubbed Dr Realistic but is widely known in the markets as Dr Doom said one of Greece, Portugal or Ireland could exit the euro rather than endure “permanent stagnation or recession.”
With Spain managing to stay clear of trouble in recent months, Roubini believes the market is “probably complacent” about Madrid’s chances of falling into trouble and remains very worried about America’s fiscal position.
"I think it was Winston Churchill who said the United States ends up doing the right thing after she has tried every other alternative. So the US will do the right thing, the question is whether it is too late,” Roubini told the Independent newspaper in London.
Roubini questions if the next President of the United States, whether it be Barack Obama or a rival, might be able to do much about the deficit until 2014 and questions whether the bond vigilantes will give the US that much breathing space.
"We'll see more financial crises – we cannot avoid them until there is a more radical reform of the banking system," Roubini said.