"Today
top Citibank analyst, Tom Fitzpatrick, warned that despite the initial
enthusiasm surrounding the Spanish bank bailout, “this is yet another
over-promise, under-deliver dynamic coming out of Europe.”
Fitzpatrick, a 28 year veteran and top analyst at Citibank, which has
$1.3 trillion in assets, also said, “we are moving to the point where we’re no
longer going to be able to see the stabilization on false promises and
under-deliveries.” He also remained bullish on gold and let KWN readers know
when the attention will shift to the problems in the US. But first, here is
what Fitzpatrick had to say about the ongoing crisis:
“Well, obviously this past weekend we had the announcement that we
were going to see some type of bailout package for Spain. But I think as we
move through this week there is a certain amount of disillusionment as people
look at the structure of it.”
Tom Fitzpatrick
continues:
“At the end of the day you are getting a sovereign
nation that people are already concerned about in terms of their borrowings.
Now Spain is looking to borrow even more money to give to the banks. You are
not getting a European type of solution. So we saw a lot of euphoria on Sunday
night and early Monday, but that seems to have dissipated.
We just had the announcement that Moody’s is
downgrading Spain, so equity markets came off late in the day. At the same time
we’ve seen the yields in Spain and Italy go straight up again, pushing right
back towards the trend highs...."
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