Karl Denninger–EU Debt Crisis and Coming Financial Crash
By Greg Hunter’s USAWatchdog.com
Plenty of financial news was made last week which gave us lots of questions for Karl Denninger. It seems almost every week, there is a major story coming out of Wall Street, Washington D.C. or from the other side of the Atlantic. Greg Hunter talks to Karl Denninger of Market-Ticker.com to get some answers. Denninger is no stranger to covering the real financial news the mainstream media (MSM) won’t touch. According to his bio, “Mr. Denninger received the 2008 Reed Irvine Accuracy In Media Award for Grassroots Journalism for his coverage of the 2008 market meltdown. In 2011, Wiley published his book “Leverage,” detailing the causes of the 2008 financial collapse along with analysis and policy prescriptions for the future.” (Click here to find out more about Mr. Denninger.)
The world saw another Greek debt deal hammered out where 95% of bondholders voluntarily took a 75% loss. Is the European debt crisis behind us now, or are other financially troubled countries such as Portugal, Spain and Italy going to want the same deal? One tip-off might be the Chicago Mercantile Exchange (CME) has also voluntarily stopped its derivative clearing house operation in Europe. CME acted as a clearing house for many kinds of derivatives including credit default swaps (CDS). CDS are basically insurance for things like sovereign debt that turns sour. What reason would the CME have to suddenly stop doing business in Europe? CME’s slogan is “. . . where the world comes to manage risk.” Maybe the company is managing a little risk of its own? There was, also, big market moving news on the results of bank stress tests done by the Federal Reserve. Are they really good tests or more of a PR ploy? Is the economy stronger today than before the 2008 meltdown?
Denninger thinks the EU debt crisis is far from over, real estate still has a lot further to drop and America is heading for another financial crash “before the end of the year.”
Video interviews with newsmakers and experts are going to be a new segment featured on USAWatchdog.com. We had some technical problems with the video on our side during the recording, but the audio was so good, we thought you needed to hear it. The site is a work in progress, and we are constantly working to improve. Please enjoy the interview.