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No Hiding Place From Crisis Bigger Than Lehman: Economist
Posted By admin On September 12, 2011 @ 8:19 am In Featured Stories,Tile | Comments Disabled
Sept 12, 2011
Carl Weinberg, the chief economist at High Frequency Economics is very worried about Europe. His central forecast is that the debt crisis will lead Europe into a depression that will mean soaring unemployment, deflation and zero interest rates for the foreseeable future.
After months of inaction, Weinberg believes the time to stop a Greek default has now passed. He believes that once it becomes clear that Greece has defaulted, the market will quickly come to the realization that other euro zone members like Portugal, Ireland, Spain and Italy will be allowed to fail as well.
With the so-called PIIGS (Portugal, Ireland, Italy, Greece and Spain) sitting on 3 trillion euros in debt, Weinberg is assuming losses could ultimately hit 50 cents in the euro, leading to a 1.5 trillion euro hit to the financial system.
This will in Weinberg’s opinion force banks to stop lending. Governments will then be forced to bail them out, elevating debt-to-GDP ratios for national governments to “horrific levels”.
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URL to article: http://www.prisonplanet.com/no-hiding-place-from-crisis-bigger-than-lehman-economist.html
URLs in this post:
 CNBC: http://www.cnbc.com/id/44482701
 Spain, Portugal and Belgium set to follow Ireland into abyss as debt crisis threatens to destroy the euro: http://www.prisonplanet.com/spain-portugal-and-belgium-set-to-follow-ireland-into-abyss-as-debt-crisis-threatens-to-destroy-the-euro.html
 The Euro Zone and the Crisis of Sovereign Debt: http://www.prisonplanet.com/the-euro-zone-and-the-crisis-of-sovereign-debt.html
 Europe’s ‘Lehman Moment’ Looms as Greek Debt Unravels Markets: Euro Credit: http://www.prisonplanet.com/europe%e2%80%99s-%e2%80%98lehman-moment%e2%80%99-looms-as-greek-debt-unravels-markets-euro-credit.html
 Will Financial Problems In Portugal Cause The European Debt Crisis To Spiral Out Of Control?: http://www.prisonplanet.com/will-financial-problems-in-portugal-cause-the-european-debt-crisis-to-spiral-out-of-control.html
 18 Signs That The Banking Crisis In Europe Has Just Gone From Bad To Worse: http://www.prisonplanet.com/18-signs-that-the-banking-crisis-in-europe-has-just-gone-from-bad-to-worse.html
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