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Wednesday, 3 August 2011

Europe on Brink of 'Major Financial Collapse': Guggenheim CIO


Hilarious. This guy needs to take a long look at his own back yard. What is happening in Europe is going to be small change compared to the Hollywood-style cluster-fuck about to descend into the US of Austerity...What he outlines in the following is exactly what is occurring in the States but on a magnitude that is off the scale.

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cnbc.com

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." [...]


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