Economy
See other Economy Articles
Title: Europe on Brink of 'Major Financial Collapse'
Source:
CNBC
URL Source: http://www.cnbc.com/id/43988195
Published: Aug 3, 2011
Author: Gennine Kelly
Post Date: 2011-08-03 10:22:58 by jwpegler
Keywords: None
Views: 9517
Comments: 15
Europe is a "train wreck" and on the "brink of a major financial crisis," Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, told CNBC Tuesday. "The way Europe is operating right now, it's what I called recently 'cognitive dissonance,'" Minerd said, or "basically doing the same thing thinking they're going to get a different outcome." "They keep throwing more and more liquidity at it thinking it's going to get better and it's not," he added. Europe fails to recognize that it has a "structural problem, not a liquidity problem." People will "flee the euro" unless they find a way to bifurcate the euro in some way where strong countries are in the euro only and the weak countries are out, Minerd explained, adding, "To be honest with you, I don't see the mechanism to do that." "As the capital is flooding out of Europe, which we're starting to see now, the first place it's going to go is to the safe havens—[U.S.] Treasurys, which [the market] perceives to be safe, and it'll chase gold," he added. Compared to a 2 percent return on Treasury notes, investors will eventually say that "stocks with price-earnings multiples of 12 or 13 or 14 look relatively cheap, and the growth for corporate earnings in the United States is very good, and this is likely to help us," said Minerd. The United States is "the least dirty shirt in the bag," Minerd concluded. "We have a very good chance of seeing equities up maybe another 10 percent [over the next six months] from where we are."
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: All (#0)
Western politicians are in living in a dream world, so they are incapable of making the kinds of structural changes to their welfare states that are needed to fix the problems.
Worse. West Politicians are in thrall to the Top 50 000. Any kind of expunging of debt and auction of housing, kills them. they'll literally be jumping out of windows.... Jump You Fuckers....;}
It's easy to predict what will happen is we do nothing; in a few years, Medicare will exist in name, but there won't be anyone left to provide care for IOUs. That's the ultimate irony: when the whole system implodes, the only thing left will be the VA and cash care: the two systems I am recommending as solutions. Ch Hughes Smith
The Main Problem with the US downgrade. The Avalanche of downgrades... the Euro will implode...
You babbling lunatic. Go and figure out the ratio of posts made by you compared to the number of posts made to you. You're a freak, screaming out lunacy into the ether. Get some medication. And a job.
------------------------------------- fuck you, moron. 8D I've been right since the 2000 Selection, Katrina, and the Depression of Xmas 2007. While your still looking to the Knesset for answers...;} PPT Epic Fail. S&P route as Top 50 000 can't control...;}
Europe Markets falling thru the Floor. DAX down 3.5% Art Cashin mentions Algos & HFT's for the first time on Nat'l TV.. Watch for Flash Crash now....;}
Thanks for the morning laughs.
DAX = Humpty Dumpty...time to rebuild that wall?
It would come up farther to the West now. And they'd have to re name it. Has the 'Maginot Line' been used yet? 8D
;}
The problem is that he is way too medicated. Self-medicated. 8D LSD PCP THC... What the hell does "8D" mean??? He puts this in every post. It's surreal.
Reagan Greenspan Ayn Rand getting Medicare thru fraud LMFAO 8D is surreal. THIS, is reality: ITALY BREAKS: Entire FTSE MIB Is Now Suspended Submitted by Tyler Durden on 08/04/2011 - 10:05 Italy Market holiday bitchez. "Further notice will follow." Don't hold your breath.
Another Day, Another Major Market suspended.... """History will, without doubt, lay this ruin of a nation at the doorstep of Obama, the corporate Democratic Trojan Horse." Barack Obama finally got the grand, bipartisan consensus he’s been working towards for two and a half years. His implacable, deep-seated hostility to the left half of the Democratic Party ("retarded," said his boy, Rahm Emanuel) – which includes most of the Congressional Black Caucus – transformed a 2008 popular mandate for progressive change into its opposite: a de facto center-right governing coalition of Republicans, rightwing Democrats and Obama’s Executive Branch arrayed against roughly half the Democrats (on a very good day) in the House of Representatives, plus a handful of liberal Senators. Obama’s unrelenting hostility to "entitlements," which he vowed to put "on the table" for cutting two weeks before taking the oath of office in January, 2009, came to fruition this week, setting in motion a rolling implosion of Roosevelt’s New Deal and Johnson’s Great Society. It is a monumental catastrophe, .... BAR Glen Ford
Silly Europeans. They should do what Republicans and Democrats do - print more money, increase entitlements, increase defense spending, build a police state, and invade more countries. If they did that their problems would be solved.
An ideal form of government is democracy tempered with assassination. -- Voltaire
#2. To: jwpegler (#1)
#3. To: All (#2)
#4. To: jwpegler (#0)
#5. To: mcgowanjm (#4)
Why don't you make like a tree and get out of here?
#6. To: Biff Tannen, All (#5)
#7. To: All (#6)
#8. To: mcgowanjm (#6)
fuck you, moron. 8D
#9. To: mcgowanjm (#7)
DAX down 3.5%
The post-Euro Europe is gonna be brutal.
#10. To: socalv8 (#9)
DAX = Humpty Dumpty...time to rebuild that wall? The post-Euro Europe is gonna be brutal.
#11. To: Fred Mertz (#8)
#12. To: Biff Tannen (#5)
(Edited)
Get some medication.
An ideal form of government is democracy tempered with assassination. -- Voltaire
#13. To: All (#12)
It's surreal.
#14. To: socalv8 (#9)
#15. To: jwpegler (#0)
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]