Europe Will See Deep Depression, China Bubble To Burst, US To Anarchy
Modernsurvivalblog.com
June 4, 2012
On Bloomberg TV this morning, Todd Schoenberger, managing principal at BlackBay Group said, “They’re headed for a deep depression (Europe). The debt bombs that are there… we’re looking at 1.5 Trillion dollars in debt just amongst the PIGS countries that are held by those countries including the IMF. Think about it… another 500 billion held by the money center banks here in New York. That is going to crush the debt problem to the poison – you just can’t cure it by throwing a couple of dollars there. But here’s the thing… if Europe goes down, who is China’s number one customer? Europe. They (China) go down… who’s going to buy our treasury debt? Yet you have a US government right now that is leveraging it’s own self by borrowing 40 cents on the dollar by issuing US treasuries… to China! If they don’t buy our treasury debt, what are we going to do in this country? It will be anarchy. Chaos.” [followed by shocked looks on the faces of the other talking heads in the interview]
Also on Bloomberg TV, Patrick Wolff, founder and chief executive officer of Grandmaster Capital Management LLC said “and China… I’m extremely bearish. I think we’re starting to see the bubble break, I think it’s probably very early in that process, I think as it breaks it’s going to go alot farther than people believe.”
From Reuters this morning, “Nothing tells the story of the global economy at the moment better than the world’s equity markets. On Friday the Dow turned negative for the year and the S&P 500 dipped below the critical 200-day moving average for the first time since December – a level that many technical analysts view as a harbinger of more selling. Bear markets are raging in Spain, Italy, Brazil and Russia. Asian stocks have been weak. Most of Europe’s other markets are negative for the year, and that is where U.S. stocks are going – and fast.”
From CNBC this morning, “The Tokyo market slumped to a 28-year low on Monday as Asian shares dived on fears of a nightmare scenario of euro-zone breakup, U.S. economic relapse and a sharp slowdown in China.”
The Rest…HERE
