HSBC: The Euro ‘Event’ Will Cause Depression

Written on by V2A, Filed under
Business, Economics, Government, World News
 16


With no end in sight to the euro zone debt crisis, events in Athens and Rome are likely to dominate investor sentiment over the coming days.

Whether it is Berlusconi hanging onto power or the talks over forming a new government in Greece, it will be impossible to ignore the euro zone debt crisis.

Analysts at HSBC have been looking at what they call the “risk on – risk off paradigm” which they believe has been the dominant feature of the market since the start of the financial crisis back in 2007. Their analysis does not make good reading, unless you are betting on risk off.

“The recent events in the euro zone have caused the risk on – risk off paradigm to strengthen even further. Over the last week it has almost become a caricature of itself: we saw extreme euphoria on the back of a purported bailout package followed days later by intense despair induced by the prospect of a Greek referendum,” said David Bloom, Global Head of FX Strategy at HSBC in a research note.

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  • http://adrianvance.blogspot.com adrianvance

    The European Union never did exist if they cannot resolve this crisis. The Greeks were stupid enough to believe their elected ruling class giving them clearly unsupportable benefits like retiring at 45 with huge pensions, eight weeks vacation, full health care and salaries that were double or triple what they could get in the private sector. Gee, sounds like America!

    The Two Minute Conservative at http://adrianvance.blogspot.com has political analysis, science and humor. Now in the top 3% on Kindle.

    • ricbee

      Poorly writ,A. The Greeks were SMART,they knew they were underwater & also that the EU would bail them out. Them Greeks ain't as dumb as they look.

      • samtman

        They are pobably not as dumb as you look.

    • Jonathan Gartner

      This is another repeat from history. Anybody remember the Common Market it to went down because of nations that could not met their obligations like Greece, Italy, Spain ect. The EU will also soon go down (I fully expect the Euro to tank) one good thing from all this is I will be able to buy a nice Italian pipe at about 40% off. Free trade must be between nations that can offer each other products with some equealization (ie you can not trade a brick of cheese for a Mercedes) other wise the whole thing falls apart. This will continue to fall apart according to the second law of Thermodynamics the more money you put in to failures like Greece and Italy the fast it will go down

  • samtman

    No, its the TP Congress that will cause a depression by not voting for the Jobs bill, and than blaming it on the Democrats/

    • patriotrenegade

      to do a "JOBS" speech three days after Gibson Guitars and have that pig immelt sitting next to the queen in the gallery is an affront to the sensibilities. TREASON.

    • scribbler1984

      Oh, I must have missed the Obama proposal that is targeted toward helping to create the conditions that make it more attractive for businesses to create jobs. Or his offer to repeal Obamacare. I just saw the proposal that adds more spending to the record-breaking amount of debt he has already managed to amass. You know, his new "stimulus" bill… short-term solutions designed to prop up his approval numbers and save his re-election chances.

    • http://www.eraserve.com/tutorials/ Rage_Fury

      2 solid years of Democrat majority after Bush predates any TP Congress. The Democrat majority caused a depression and the Democrats have only themselves to blame then and now since they still own the Senate.

  • OLD DAD

    sounds like another version of Dumocrap socialism gone bad. Consider that we could belooking at the future of America if these Morons aren't stopped and soon.
    Good Bye Harry, Nancy and therest of the idiots.

  • patriotrenegade

    hsbc is a shill bank for boa in foreclosure proceedings. They are both owned by chinese communist animals.

    • JBinGB

      WHAT!!

      • krazy-mad

        Yep, Hong Kong Shanghai Banking Corp.

  • http://www.eraserve.com/tutorials/ Rage_Fury

    After reading this article my first though was: Excellent
    Am I wrong for this?

  • buck

    Of course it will , thats why it makes so much sense to follow in their footsteps , the ultimate goal of all American progressives .

  • LoneStar

    If You Think Europes woe's aren't going to spill over onto our shores—-[Think Again]

  • samtman

    If the EU goes down it will be the Rich who will get it in the shorts, because they own most of the stocks in America, the poor will remain poor as always, the middle class does not exist anymore.

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