Nouriel Roubini, the famed NYU economist dubbed Dr. Doom for his ultra-bearish predictions, argues that without the ECB engaging in QE (drop rates down to zero and massively purchase bonds) and a strong stimulus program from Germany, the European Union will not survive. (Source: Forbes)
I think Europe will go back to the way it was before the Euro.
Or, there could be two Euros - Euro 1 comprising the high productivity countries of the north. And Euro 2 - comprising the southern countries. This is the best it can happen. Both areas will have their currency and their interest rates.
The financial issues facing the region are the result of putting together countries with extremely different productivity differentials. These differentials have caused the financial problems Europe is facing. And these problems are not going away because the issues of productivity are too endemic to solve in just a few years.
Europe was a bad idea. The Euro will fail, as I have been saying for years.
More details in my The Peter Dag Portfolio and my free educational videos on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
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