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Europe on Brink of 'Major Financial Collapse':Guggenheim CIO [structural problem,not a liquidity"]
CNBC ^ | August 2 2011 | By: Gennine Kelly

Posted on 08/02/2011 5:47:40 PM PDT by NoLibZone

Europe is a "train wreck" and on the "brink of a major financial crisis," Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, told CNBC Tuesday.

"The way Europe is operating right now, it's what I called recently 'cognitive dissonance,'" Minerd said, or "basically doing the same thing thinking they're going to get a different outcome."

"They keep throwing more and more liquidity at it thinking it's going to get better and it's not," he added. Europe fails to recognize that it has a "structural problem, not a liquidity problem."

People will "flee the euro" unless they find a way to bifurcate the euro in some way where strong countries are in the euro only and the weak countries are out, Minerd explained, adding, "To be honest with you, I don't see the mechanism to do that."

"As the capital is flooding out of Europe, which we're starting to see now, the first place it's going to go is to the safe havens—[U.S.] Treasurys, which [the market] perceives to be safe, and it'll chase gold," he added.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Editorial; Extended News; Foreign Affairs
KEYWORDS: debt; eu

1 posted on 08/02/2011 5:47:46 PM PDT by NoLibZone
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To: NoLibZone

bump.


2 posted on 08/02/2011 5:51:45 PM PDT by ken21 (ruling class dem + rino progressives -- destroying america for 150 years.)
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To: NoLibZone
IDK How they will resolve this but the days of the Euro as we have known it, are numbered.
3 posted on 08/02/2011 5:56:53 PM PDT by hinckley buzzard
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To: NoLibZone
...'cognitive dissonance,'" Minerd said, or "basically doing the same thing thinking they're going to get a different outcome."

Also known as insanity...same song, different verse on this side of the Atlantic.

Unless there is contagion from an EU collapse that then takes the US down, all we've done today is delay our own collapse till maybe 2013-2014, during Dictator Obama's 1st permanent term in the new USSA.
4 posted on 08/02/2011 6:01:51 PM PDT by CaptSkip
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To: NoLibZone
It sounds just like the USA.


5 posted on 08/02/2011 6:08:13 PM PDT by mylife (OPINIONS ~ $ 1.00 HALFBAKED ~ 50c)
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To: hinckley buzzard

Just like the Dollar.


6 posted on 08/02/2011 6:12:37 PM PDT by Protoss
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To: hinckley buzzard

Just like the Dollar.


7 posted on 08/02/2011 6:12:53 PM PDT by Protoss
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To: NoLibZone

They just need some advice from The Ben Bernank.


8 posted on 08/02/2011 6:18:13 PM PDT by Rocky (REPEAL IT!)
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To: NoLibZone
Europe America is a "train wreck" and on the "brink of a major financial crisis," Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, told CNBC Tuesday.

"The way Europe America is operating right now, it's what I called recently 'cognitive dissonance,'" Minerd said, or "basically doing the same thing thinking they're going to get a different outcome."

"They keep throwing more and more liquidity at it thinking it's going to get better and it's not," he added. Europe America fails to recognize that it has a "structural problem, not a liquidity problem."

9 posted on 08/02/2011 6:19:54 PM PDT by AAABEST (Et lux in tenebris lucet: et tenebrae eam non comprehenderunt)
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To: NoLibZone
Europe America is a "train wreck" and on the "brink of a major financial crisis," Scott Minerd, CIO of the fixed-income firm Guggenheim Partners, told CNBC Tuesday.

"The way Europe America is operating right now, it's what I called recently 'cognitive dissonance,'" Minerd said, or "basically doing the same thing thinking they're going to get a different outcome."

"They keep throwing more and more liquidity at it thinking it's going to get better and it's not," he added. Europe America fails to recognize that it has a "structural problem, not a liquidity problem."

10 posted on 08/02/2011 6:20:06 PM PDT by AAABEST (Et lux in tenebris lucet: et tenebrae eam non comprehenderunt)
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To: hinckley buzzard
All it will take is the growing tide of “Nationalism” among Germany and France, and this “experiment” called the Euro will collapse.
11 posted on 08/02/2011 6:26:35 PM PDT by Zeneta (Why are so many people searching for something that has already found us ?)
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To: NoLibZone

Guggenheim doesn’t exactly have a stellar reputation, value-of-the-trademark aside.


12 posted on 08/02/2011 6:34:24 PM PDT by _a_0_0_
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To: Zeneta

And another thing:

http://www.youtube.com/watch?v=RsxK00lSgfQ


13 posted on 08/02/2011 6:38:50 PM PDT by Zeneta (Why are so many people searching for something that has already found us ?)
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To: NoLibZone
Fleeing the Euro...

Fleeing the Dollar...

What's left? The Yuan?

or maybe...

BetOnIraq.com

/s

14 posted on 08/02/2011 6:45:55 PM PDT by ExGeeEye (Freedom is saying "No!" to the Feds, and getting away with it. "Speak 'NO' to Power!")
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To: ExGeeEye

Swiss Frank, but watch out for potential intervention to keep their currency from getting too strong.

Check out the charts on the Swiss vs. US, or the Euro.


15 posted on 08/02/2011 7:05:38 PM PDT by Zeneta (Why are so many people searching for something that has already found us ?)
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To: Zeneta
“All it will take is the growing tide of “Nationalism” among Germany ........, and this “experiment” called the Euro will collapse.”

And some screwy Corporal in the army to win over the people with grandiose visions of a new Germany in the future.

16 posted on 08/02/2011 7:07:20 PM PDT by CapnJack
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To: CapnJack

That could NEVER happen /s


17 posted on 08/02/2011 7:12:14 PM PDT by Zeneta (Why are so many people searching for something that has already found us ?)
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To: CapnJack

Don’t count out the French.

I just saw your edit.


18 posted on 08/02/2011 7:14:56 PM PDT by Zeneta (Why are so many people searching for something that has already found us ?)
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To: NoLibZone

Germany was in the tank prior to WWII. Then they came out of it with a dictator. My daddy, when he was alive said “When the economy of the world is in the tank, population is to big, the only answer is war. Never forget that.” Funny that the older I get, the smarter my daddy gets.


19 posted on 08/02/2011 7:39:33 PM PDT by RC2
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To: NoLibZone

The EU might just break up.


20 posted on 08/02/2011 8:05:01 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: RC2

“Germany was in the tank prior to WWII.”

They had it rough during the 20s but actually did quite well during the Depression of the 30s, in some measure due to the efforts of Hjalmar Horace Greeley Schacht.


21 posted on 08/02/2011 11:37:36 PM PDT by Pelham (Obama, the vanguard of the proletariat since 2008)
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To: NoLibZone
“The way Europe is operating right now, it's what I called recently ‘cognitive dissonance,’” Minerd said, or “basically doing the same thing thinking they're going to get a different outcome.”

And we're doing exactly the same thing...

While the morons in Washington swear it will be a different outcome... Their lust for power blinds them to reality.

22 posted on 08/03/2011 3:43:38 AM PDT by DB
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To: NoLibZone

Ah hell - just borrow more, spend more, and call it a win.


23 posted on 08/03/2011 3:53:12 AM PDT by Principled
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To: NoLibZone

Socialism 3.0 in the works .


24 posted on 08/03/2011 5:46:23 AM PDT by lionheart 247365 ( -:{ GLENN BECK is 0bama's TRANSPARENCY CZAR }:-)
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To: Zeneta

Which is a better bet ,, Swiss Fancs or Ball Park Franks ???


25 posted on 08/03/2011 5:49:13 AM PDT by lionheart 247365 ( -:{ GLENN BECK is 0bama's TRANSPARENCY CZAR }:-)
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