Prepare for a Meeting of "Monetary Cardinals" as Euro End-Game Nears; Sarkozy Falling Apart; "Hope Trade" in Extreme Overvaluation

"Steen Jakobsen, chief economist for Saxo Bank in Denmark, has some very interesting thoughts to share on the sovereign debt crisis in Europe. His six major points are:

1. More austerity cannot possibly work.
2. Voters have lost the faith and willingness needed to repair the current EU and Eurozone construct
3. Credit and debt cycle is busted. Irving Fisher's Debt-Deflation Model is in progress.
4. The end-game is near for Europe. Prepare for a meeting of the cardinals
5. Nicolas Sarkozy is falling apart and likely to lose to Marine Le Pen in the first round of French elections
6. The "Hope Trade" in equities is in Extreme Overvaluation. Be nimble and cash-rich now to be able to take advantage of deep discounts coming up later.

Faith in Eurozone Dissipating Fast

Please consider More apathy, less austerity - faith in Eurozone dissipating fast written below as a complete guest post in entirety..."

at http://globaleconomicanalysis.blogspot.com/2012/01/prepare-for-meeting-of-monetary.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29