“The Eurocollapse is coming, the Eurocollapse is coming!” US markets finished lower Monday pricing in the expectation that the upcoming EU Summit will be an exercise in futility and may as well be run by rabble rousing soccer hoodlums.
George Soros may not have a solution, but he can certainly diagnosis the problem. Speaking to Bloomberg about the financial debacle that is Europe, the billionaire investor said,
“Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt - they are Siamese twins, tied together and you have to tackle both. It's recognized that you have to do that and there is no widespread agreement on what to do on the banking side. It's the beginning of a banking union and there is a
disagreement on the fiscal side and unless that is resolved in the next 3 days then I am afraid that the summit could turn out to be a fiasco, and that could be fatal, because you are facing the possibility of Greece leaving the euro and perhaps the European Union
and you need to strengthen the remaining euro structure to withstand that shock.”
Of course the “Siamese twins” phenomenon isn’t just a European problem. Here in the US, we have our own conjoined siblings – the banksters and the Fed – crippling the free market system through a no-fail guarantee.
We not only have to take care of our banks, but the European banks too, thanks to Ben Bernanke and the Central Banking Cabal. That’s a whole lot of mouths to feed in our very hungry multi-headed family.
Trade well and follow the trend, not the so-called “experts.”
President & Founder - TradingAdvantage