The great European deal

Indebted nations are going to borrow more money to bail out other indebted nations who ask insolvent banks to cut a 50% off deal on the loans that were given to them. The insolvent banks will then have to raise capital which they will of course borrow from the over-indebted nations whom they just gave money to.

Crazy? Yes.

Furthermore, all pension funds will find their investments in "safe" government bonds reduced by 50%. Just wait for the people to find out that there is no money to pay their pensions.

Europe cannot work the way it is set up. I am saying this for years.

Let's enjoy the rally as long as it lasts. Every crisis is followed by a huge bull market.

More details in my The Peter Dag Portfolio and my free educational videos on www.peterdag.com.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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