Interesting article
Europe has two choices now
And tomorrow the European leaders meet again. They were supposed to be discussing Greek matters. But you can bet your bottom dollar that the assault on Spanish and Italian sovereign debt is what they’ll be focusing on.
They’ve got two choices now. They can either come out and tell it like it is. They can tell us that the European financial system isn’t working. They’ll have to make it clear who’s going to pay for the clean-up. Bond holders, or taxpayers, or both?
They’ll also have to come up with an approach on how they’re going to fix the obvious problems of monetary union.
The other option is they can come out with more hollow words and more dithering and fudging. Keep the patient in a vegetative state and pretend nothing’s wrong.
And that’s exactly what I think they’re going to do. An agonising and prolonged death looks like it’s on the cards.
What I plan to do as Europe collapses
So how am I preparing for this agonising death? I’m staying short banks, I’m holding a short on the FTSE and I’m definitely long gold. Click on the links to read why I think these are such great trades.
And on gold, if you haven’t had a chance to read Dominic Frisby’s Gold Profit Plan, then I’d highly recommend you do so. He has some very interesting thoughts on what he thinks are the best ways to build exposure to gold right now.
You can read the report here.
Because at some point the European debt markets are likely to go pop. Week by week, the cracks get bigger…
It’s going to be a very interesting summer.
Good investing,
Bengt Saelensminde
The Right Side
It's next winter I'm worried about when the austerity measures bite.
Greasy politicians, who should have seen it coming, will be alright Jack
