Tuesday, January 3, 2012

New study shows that US economy hinges on the fate of the Euro banks and crisis

In a little known study that came out of Princeton University recently, American banks are so leveraged and so tied to their European counterparts that the fate of the US economy hinges on the outcome of Europes ability to solve their debt crisis.

One of the reports making the rounds today is a previously little-known academic presentation by Princeton University economist Hyun Song Shin, given in November, titled "Global Banking Glut and Loan Risk Premium" whose conclusion as recently reported by the Washington Post is that "European banks have played a much bigger role in the U.S. economy than has been generally thought — and could do a lot more damage than expected as they pull back." - Zerohedge

For those already in the know, this is the primary reason out central bank, the US Federal Reserve, has been willing to use taxpayer money to bailout the European banks with such frequency.  For the talking heads however, who can only wait in anticipation for rumors over actual news, this might come as a shocking revelation, only to be discounted as 'fearmongering' and 'conspiracy theory', which normally is the case for those entitites that use NLP to push Americans toward a desired belief.

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