Thursday, December 15, 2011

Europe's Crisis - Time is Running Out
Zero Hedge shares the thoughts of David Rosenberg (MAA). He thinks the European liquidity crisis will become a full blown solvency crisis in the first quarter of the new year .. Rosenberg ponders Greece exiting the euro - the European Central Bank (ECB) owns 60 Billion euros of Greek debt, is it likely for Greece to exit? - "40 billion euros of deposits have fled the country's banking system in just the past year. This is equal to 17% of GDP! More than 30% of that outflow took place in September and October alone ..  As we saw with Lehman, once entities, reliant on capital markets for their funding, lose confidence among the investment community, a liquidity crisis can morph into a solvency crisis very quickly. This all promises to come to a head sometime in the first quarter of the new year, in my opinion."
Link here to the article

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