U.S. Banks Aren’t Nearly Ready for Coming European Crisis – Bloomberg 06-24-12

Salient to Investors:

Simon Johnson at MIT Sloan School of Management says:

  • The euro area faces a major economic crisis, most likely a series of rolling, country-specific problems involving some combination of failing banks and sovereigns that can’t pay their debts in full.
  • Expect system wide stress, emergency liquidity loans from the ECB and politicians at one another’s throats.
  • Even optimists say openly that Europe will only solve its problems when the alternatives look sufficiently bleak and time has run out.
  • Dissolution risk is real.
  • Most worried about the balance sheets of the biggest banks.

Read the full article at http://www.bloomberg.com/news/2012-06-24/u-s-banks-aren-t-nearly-ready-for-coming-european-crisis.html