The Eurozone has a 40% chance of collapsing in the next year
Baltimore, Md. (PRWEB) November 30, 2011
The Eurozone has a 40% chance of collapsing in the next year, according to global investing strategist Martin Hutchinson.
With Greece already on the ropes, a larger country, like Italy, Spain or France, finding itself in the same situation could be all that’s needed to push the European Central Bank (ECB), and the Eurozone, over the edge, says Martin.
The ECB, he goes on to say, will soon run out of bailout funds… or any funds, for that matter.
The European Central Bank has a capital of $14.6 billion. To understand just how small that is in the world of government banks, the Bank of England will drop more than ten times that ($193 billion) just on its most recent round of economic recovery initiatives.
With such small funds at its disposal, the ECB can do very little if any of the “Big Three” (Italy, Spain or France) begins to teeter. To rescue those much larger economies, the Eurozone will have to beg for more bailout funds from its taxpayers, beg its member states to print money to pay the debts… or both, says Martin.
The EU can’t afford either of those options. They could trigger astronomical Eurozone inflation. And according to Martin, the Eurozone will begin to fracture as a result.
But the way the Eurozone fractures will determine how fast and how well Europe recovers in the next few years… And each possibility will mean very different advantages and weaknesses for investors, says Martin.
Learn the three possible results of the Eurozone economy crack up in Martin Hutchinson’s new report for Money Morning.
Money Morning.com provides valuable investment research and analysis to its more than 550,000 readers everyday. Martin Hutchinson is one of many market and industry experts who offer unique insights on new investment trends and little-known companies and industries, while showing readers the truth behind today’s biggest news stories.
Please feel free to repost this story on your website, including a link to the original article on Money Morning – only the investment news you can profit from.