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Broken economies and financial systems need fixing. Giants banks created today's problems.
Recovery depends on nationalizing ones worth saving, breaking them up, separating commercial banks from investment ones and insurance companies, and letting the others die.
Evans-Pritchard cited Professor Tim Congdon saying "the chief cause of Europe's credit crunch is the EU policy of forcing banks to raise core Tier 1 capital ratios to 9pc too fast.""Loans are shrinking because of a misguided regulatory assault. It is crazy to make banks shrink risk assets in a recession," he said.
Evans-Prichard added that LTRO problems abound. Draghi may have no way to resolve them. He cited Capital Spreads' Angus Campbell saying he needs radical ECB mandate change to deliver as promised.
"Until European politicians can agree to the necessary treaty changes, we could see this rally fizzle out as quickly as it materialized." Achieving it requires 17 Eurozone member countries agreeing. It won't happen quickly if at all.
Peter Schiff is a longtime skeptic. He thinks economic collapse could begin August 1. He posits a worse crisis than 2008. Others agree.
The late Bob Chapman predicted economic collapse any time from late 2012 to 2017. No one can predict timing. All sorts of stopgaps can delay trouble. Central banks used many. At issue is how much more can they do.
According to Schiff, QE III delays America's day of reckoning. At the same time, it'll weaken the dollar and won't lift the economy. He envisions an eventual Greek-style crisis.
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