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One Trader Weighs In On ‘The European End Game’

"...we have long passed the point where Germany can walk away from this union. Let’s forget the political implications of an EU collapse (which are considerable and provide a great degree of inertia for the EU remaining together), and instead focus on the fiscal implications."

"...we have long passed the point where Germany can walk away from this union. Let’s forget the political implications of an EU collapse (which are considerable and provide a great degree of inertia for the EU remaining together), and instead focus on the fiscal implications."
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2 comments on “One Trader Weighs In On ‘The European End Game’

  1. Anonymous

    Graph all the central bank balance sheets you want, it’s still not going to fulfull any obligations to earn and spend in the economy.

  2. Dave Mastropolo

    The bloated equity markets both here and overseas are premised on the belief that QE willl persist indefinitely. Looking at the EU balance sheets, I think that perhaps QE will persist indefinitely and high debt, slow growth, bloated financial assets will become more of the norm than ever. The financial psychology has already veered in this direction.

    What I find most interesting is the arrogance of the equity investors, at least here in the States. Arrogance primarily rooted in the Fed put.

    As Warren Buffets partner indicated , equity investors have been given a free undeserving gift from the Federal reserve. 10 years. The savers and fixed income investors came out with the short end of the stick. Equity investors should be far more humble in light of the catalyst behind their windfall. Nonetheless, in the end there’s truly no free lunch. Leverage always inevitably brings things back down to reality.

    If the USA is having trouble digging out of the QE hole, EU certainly will have much more of an issue. The debt trap......

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