This week we witnessed an intellectual revolt by the International Monetary Fund (IMF), the key partner involved in this European crisis with the European Commission and European Central Bank aka the Troika. It validates my long-term euro bearish view.
First, we saw the warning that European banks needed to raise a cool $4.5 trillion in capital...Ouch. That would represent a massive deleveraging and I think especially exposes emerging Europe-Eastern and Central Europe-who depend to such a large degree in bank funding. Secondly, and this is where the cry uncle comes into play, the IMF concluded, finally, that austerity measures are squeezing the life out of the Eurozone economy.