Citi: Euro Collapse Would Spark Global Depression, Push Unemployment Above 20%

In one of the gloomiest predictions about the fallout from a breakup of the euro, Citigroup's chief economist on Thursday warned a collapse of the currency will result in years of a global depression that could send unemployment spiking above 20% in the West. The comments, from Citigroup chief economist Willem Buiter, underscore the growing concern that policymakers won't be able to forge a credible solution that will keep the currency union intact. Buiter, previously a professor at the London School of Economics, said the ensuing chaos caused by the unlikely event of a disorderly sovereign default and exit by all five periphery nations would trigger a financial catastrophe and global depression. The disaster, he said, would send GDP plummeting more than 10% and unemployment in the West surging to 20% or more.

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