Europe Soverign Risk Becoming Banking Risk.
Discussion re the European debt crisis.
The European banks are all bankrupt too, partly because they've lent so much capital to bankrupt governments. So you've got two sets of bankrupt institutions trading debt back and forth between themselves. It doesn't help to say that it's the PIIGS that are in the worst shape, because it's the banks in the supposedly wealthier countries that own the PIIGS's debt. They are all tied together.
Personally, I am very cautious at this time for investments. Cash is a position. I just feel that the European ECU leaders are hogtied to the rails of a speeding oncoming train with no options or solutions at hand.
Hopefully the web link below this clip works.
This is the first time I will try to imbed a link to the above interview. Hopefully it works.
http://www.bloomberg.com/video/roubini-we-are-heading-for-a-global-perfect-storm-fPAXkJVOTpaqlgZm38eMHg.html
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