Europe on Brink of 'Major Financial Collapse':Guggenheim CIO [structural problem,not a liquidity"]

CNBC ^ | August 2 2011 | By: Gennine Kelly

[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.

[ken21]

bump.

[hinckley buzzard]

IDK How they will resolve this but the days of the Euro as we have known it, are numbered.

[CaptSkip]

...'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.

[mylife]

It sounds just like the USA.

[Protoss]

Just like the Dollar.

[Protoss]

Just like the Dollar.

[Rocky]

They just need some advice from The Ben Bernank.

[AAABEST]

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."

[AAABEST]

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."

[Zeneta]

All it will take is the growing tide of “Nationalism” among Germany and France, and this “experiment” called the Euro will collapse.

[_a_0_0_]

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

[Zeneta]

And another thing:

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

[ExGeeEye]

Fleeing the Euro...

Fleeing the Dollar...

What's left? The Yuan?

or maybe...

BetOnIraq.com

/s

[Zeneta]

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.

[CapnJack]

“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.

[Zeneta]

That could NEVER happen /s

[Zeneta]

Don’t count out the French.

I just saw your edit.

[RC2]

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.

[redgolum]

The EU might just break up.