European Debt Crisis Analysis

Here is an infomrative and detailed video with analysis of the European debt crisis, which is being handled by the ECB using LTRO (Long Term Repurchase Operation), which is similar to QE1 and QE2 done by the Federal Reserve Bank in the USA. The debt levels around the globe are unprecedented in peacetime. The odds of restructurings and/or defaults are higher than most believe. When does debt become unsustainable? The video shows the debt levels of numerous countries have reached “problem” levels. Since the bill coming due in the form of maturing bonds is so large, policymakers in Europe have no easy way out. “Solutions” may include printing money to create inflation or debt restructurings/defaults; or a combination of the two. Chris Ciovacco of Ciovacco Capital Management compares healthy markets to the current state of affairs. Which investments tend to perform well during deflation/defaults/restructurings? Which investments tend to perform well during periods of inflation/money printing by central banks? What is a back-door bazooka? Studies by Kyle Bass of Hayman Capital Management.

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