Posted by David Morgan on January 12, 2012
Tracy Weslosky: Happy New Year, David. It’s our first Currency Countdown for 2012, how are you today?
David Morgan: I’m well, thank you, Tracy.
Tracy Weslosky: Well let’s talk about what’s happening with the Euro. I’d like to start about the bonds and the impact from the collapse of the Euro. Where do you want to begin?
David Morgan: The overall conditions in Euro, in my view and many commentators is the Eurozone continues to deteriorate, and we’re in a situation where you just cannot get this group of individual countries banded together for political purposes on an economic basis that it is equal for everybody. It’s impossible, and the markets are bearing that out. So strength in one area, weakness in another, and that will continue. As the old adage goes, a chain is as strong as its weakest link. The weak links are several.
You’ve got Spain, Italy, Greece, and others, Ireland. And they’re basically in a depression, these countries. And there’s all kinds of people literally in the streets. So even though France might look good today, and Germany might look good today and the last week or so and there’s all kinds of commentary about resolution of problems and the ECB coming to the rescue. In my view it’s a smoke screen; things are deteriorating basically before our eyes.
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