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11 Quotes That Show How Worried The Financial World Is About Europe Right Now

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posted on May, 9 2012 @ 03:52 AM
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I like this blog as the author does quite a good job with pulling together a number of sources of information to support his views, in this instance, just how worried people in the financial world are about European economic and financial conditions following the elections last weekend and the tensions building between European nations. Will be interesting to see what comes out of this malaise in political relations as many parts of the continent continue running deficits and increased debt, slowing and contracting economies, and international bail outs under threat due to newly elected leaders looking to break from the stringent conditions stipulated in the pact. I cite only in part, so refer to link for full article.

The Economic Collapse Blog


Instead of moving in one clear direction, the eurozone is now fractured and tensions are rising.

So what comes next?

Well, investors are not certain what comes next and that has many of them deeply concerned.

The following are 11 quotes that show how worried the financial world is about Europe right now....

#1 Tres Knippa of Kenai Capital Management: "What is going on in Europe is an absolute disaster…the risk-on trade is not the place to be. I want to be out of equities and very, very defensive because the situation in Europe just got worse after those elections."

#2 Mark McCormick, currency strategist at Brown Brothers Harriman: "We’re going to have higher tensions, more uncertainty and most likely a weaker euro."

#3 Nick Stamenkovic, investment strategist at RIA Capital Markets in Edinburgh: "Investors are questioning whether Greece will be a part of the single currency at the end of this year."

#4 Jörg Asmussen, a European Central Bank executive board member: "Greece needs to be aware that there is no alternative to the agreed reform program if it wants to remain a member of the eurozone"

#5 Tristan Cooper, sovereign debt analyst at Fidelity Worldwide Investment: "A Greek eurozone exit is on the cards although the probability and timing of such an event is uncertain."

#6 Art Cashin: "Here’s the outlook on Greece from Wall Street watering holes. If a coalition government is formed or looks to be formed, global markets may rally. Any coalition is unlikely to make progress on goals, since austerity is political suicide. There will likely be another election around June 10/17. A workable majority/plurality remains unlikely, so back to square one. Therefore, Greece will be unable to attain goals by the deadline (June 30). Lacking aid funds, pensions are suspended and government workers are laid off. Protestors take to the streets and government is forced to revert to drachma to avoid social chaos. Pass the peanuts, please."

#7 John Noonan, Senior Forex Analyst with Thomson Reuters in Sydney: "Sentiment is very bearish, The euro is under a lot of pressure right now. I get the feeling that it’s going to be a nasty move lower for the euro finally"

#8 Kenneth S. Rogoff, a professor of economics at Harvard: "A Greek exit would underscore that there’s no realistic long-term plan for Europe, and it would lead to a chaotic endgame for the rest of the euro zone."

#9 Chris Tinker of Libra Investment Services: "It’s a binary decision. If Greece gets itself to the point where the European administration says, ‘We can’t play this game anymore,’ that starts a domino effect"

#10 Nicolas Véron, a senior fellow at Bruegel: "France has very limited fiscal space and actually has to engage in fiscal consolidation"

#11 80-year-old Greek citizen Panagiota Makri: "I'm confused. I feel numb and confused. Only God can save us now"

All of this comes at a time when much of Europe is already descending into a new recession. Economies all over Europe are contracting and unemployment rates are skyrocketing. Until things start improving, there is going to continue to be a lot of civil unrest across Europe.

Meanwhile, things are not so great in the United States either.

JPMorgan Chase CEO Jamie Dimon claims that the U.S. economy is holding a "royal straight flush", but the only part of that he got right was the "flush" part.

There are 100 million working age Americans that do not have jobs, the middle class continues to shrink, the rising cost of food and the rising cost of gas are severely stretching the budgets of millions of American families and the federal government continues to run up gigantic amounts of debt.

When Europe descends into financial chaos, the United States is not going to escape it. The financial crisis of 2008 deeply affected the entire globe, and so will the next great financial crisis.

Let us hope that we still have a little bit more time before the next great financial crisis strikes, but things in Europe are rapidly unraveling and at some point the dominoes are going to begin to fall.




posted on May, 9 2012 @ 03:58 AM
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Thanks for the info

But I keep hearing this every week and still nothing happens.

The dates keep moving, first people said Feb then April.

I'm sure these people scar monger people into buying certain stocks.



posted on May, 9 2012 @ 04:06 AM
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Europe is a house of cards. Im not surprised that people are worried. I am surprised that the rest of the West like us in Australia are not more worried. We are part of the house of cards too. Last year the Labor Government passed 'covere3d bond legislation' while the Capitalist media had us arguing about boat people. So right now the Australian Banks are selling 'tax payer backed bonds'. So when this house of cards collapses we can add all those 'tax payer backed bonds' to our National Debt. 'Tax payer backed bonds' is how they brought down Greece and Spain. So the IMF will come along and tell Australia that they will loan us the money that we need from taxpayers around the world if we accept harsh Austerity and break the Union's. Hmmm....seems kinda obvious what the IMF are doing.

The entire Imperial Empire should be worried,not just European's.



posted on May, 9 2012 @ 04:19 AM
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It is socialism that is bringing down Europe, not Capitalism.
Read between the lines.



posted on May, 9 2012 @ 05:07 AM
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reply to post by rom12345
 


where's the capitalism???

all I see is the taxpayer getting nailed with the gambling debts of big banks....if there was capitalism, then there would be no more big banks!!! they would have met their demise, just like any other business, or person for that matter, who screws up to terribly!!!

this is facism, big business and gov't in bed with each other, lining their pockets with taxpayer's money!

at least here in the US, we haven't had pure capitalism in decades. it's been a hybrid of capitalism and socialism, both geared mainly to help big business thrive at the expense of the taxpayers.



posted on May, 9 2012 @ 05:26 AM
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With that many countries involved the paths this Eurozone mess could take are many, but none of them lead anywhere good, I fear.

I am by no means an expert on the ins and outs of world finance or the intricacies of European culture(s), but I've been watching this for awhile now and comparing it to history. What I think is going to happen is a total fracturing of the Eurozone as the more stable economies are going to grow weary of propping up the least stable economies. I think chief among them will be Germany. Best case, they back out politely and quietly and remain a fairly vital country with enough stability to help the others along ( by being a strong, stable neighbor) from the outside. Worst case, young Germans become very resentful of carrying the load for a bunch of n'erdowells and start question why they're still doling out meek mea culpeas for the sins of their grandfathers. That could snowball into some pretty grim territory fast. The Third Reich rose to power primarily because the wounds of WW1 were still needing to be licked. Whenever you have economic burdens, clashing cultures, and angry, resentful youth, you've got all the ingredients needed for....well.....being doomed and repeating it.

Might as well add that I think those ingredients are being stirred up into bitter cakes all over the globe. Including the much lauded East that some folks are chittering about in another thread. Large populations of kids without futures aren't going to sit still forever. The world's debt bomb is about to blow and the fallout will be world changing.



posted on May, 10 2012 @ 12:27 PM
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I heard things will start getting real around the beginning of 2013




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