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What about an entire continent cratering. Financial analyst Graham Summers explained what few of his peers will touch. European banking problems are huge.
The Eurozone's largest banks are insolvent. On average, they're leveraged 26 - 1. Lehman was at 30 - 1 when it collapsed.
European nations are bankrupt. Debt to GDP including unfunded liabilities is 875% for Greece, 549% for France, 418% for Germany, 364% for Italy, and 244% for Spain.
For the EU overall it's 434%. For America it's 400%. "(B)ankrupt banks (operate) in bankrupt countries," says Graham. "The entire financial system is based on the assumption that European sovereign bonds are still risk free.""So you have bankrupt nations selling bonds to insolvent banks, which then" lever 26 - 1. It's madness and ignored by mainstream observers.
Europe is doomed, believes Graham. It can't "get out of this mess unless the entire union (grows) at over 10% for a decade."
Now's the time to prepare for trouble, he stresses. Central banks may have no magic bullets left. They're scared to death but won't admit it.
He adds that Spain is way beyond saving. Collapse is coming. The euro is doomed. The EU will eventually break up. Reality may arrive within a few months or less after America's elections. It makes no difference who wins.
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