John Mauldin - Europe is Destroying Their Currency

"With renewed fears of Europe becoming a systemic risk to the global banking system, today King World News interviewed John Mauldin, President of Millennium Wave Securities. Mauldin spoke candidly with KWN about the crisis, how much has been printed and what to expect going forward: “$7 or $8 trillion (in printing) is probably where we are, but whatever the number is, it’s significant. Will Europe have to print a great deal more? The answer is absolutely. What’s that number? We don’t know. We don’t know for two reasons.”

John Mauldin continues:

“We don’t know how truly bad the banking system is. If they clog the banking system up, the wheels really do come off. As a culture we are in the negative, very unpleasant situation of having to bail out a bank that we really don’t like, and we really don’t want to do that. But if we don’t, the wheels come off.

European banks are at least two and a half to three and a half times worse than US banks. Think about the US, as bad as it was in 2008, Europe is still that bad and in many cases worse. When they stop printing money, when they stop doing their version of TARP’s, which are called LTRO’s, it’s a disaster. It looks like Greece..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/13_John_Mauldin_-_Europe_is_Destroying_Their_Currency.html

Global Systemic Risk Is Rising Rapidly Again

"The risk of the 30 most systemically important financial institutions (SIFI) in the world has risen over 30% in the last three weeks as the effects of LTRO fade and encumbrance becomes the new reality. This less-manipulated, government-bank-reacharound-driven bond-market sense of reality has retraced almost 40% of its improvement from its peak last November at 311bps to its best level mid-March at 171bps. The current 226bps level is extremely elevated and as one would expect is dominated by European and US banks (with US banks on average trading wider than Europeans - which may surprise many but Europeans dominate the worst names - most specifically the Spanish banks)."







Source: Capital Context

at http://www.zerohedge.com/news/global-systemic-risk-rising-rapidly-again?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

U.S. Financial Problems Have Horrendous Implications for Markets and Systemic Stability – Here’s Why

"Systemic-solvency and liquidity issues continue to plague the Fed and to restrain U.S. economic activity. Bank lending remains impaired, household income has taken a new hit, annual and monthly growth in the broad money supply appears to be stalling, again and U6 unemployment levels are at staggering levels. These ongoing financial problems have horrendous implications for the markets and systemic stability. [Let me explain.]
So says John Williams (www.shadowstats.com) in recent comments as posted on King World News which can be read in their entirety here."

at http://www.munknee.com/2012/03/u-s-financial-problems-have-horrendous-implications-for-markets-and-systemic-stability-heres-why/