On Europe's Debt Crisis: "The bottom line is that even if the fiscally-challenged countries of Europe do not end up defaulting, or leaving the Union, the reality is that they will have to take draconian measures to meet their financial obligations. Devaluation was the answer in the past in Greece but it cannot rely on that quick fix this time around without leaving EMU and if it did, then that could make it even harder to service its Euro-denominated debts — at least not without a restructuring. And, if Greece did attempt a debt restructuring, rest assured that Italy, Spain, Portugal and Ireland would be next — we are talking about a combined $2 trillion of potential sovereign debt restructuring that would more than triple the $600 billion direct cost of the Lehman bankruptcy... This poses a hurdle over global growth prospects at a time when Asia will feel the pinch from the credit-tightening moves in China & India. Heightened risk will exert a dampening global dynamic in terms of economic decision-making by businesses & households...RISK CONCERNS ARE NOT LIMITED to EUROPE...."
- David Rosenberg