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The markets are facing a cathartic moment, and heading for "dire straits," warns economist Steen...

The markets are facing a cathartic moment, and heading for "dire straits," warns economist Steen Jakobsen. This European liquidity crisis could bring equity market declines of 20% to 30%, even before the December 9 European Union summit. But from that, Steen says, there will be tremendous opportunity for returns over the next 16 to 20 months as we emerge from the crisis and the end of the downward cycle approaches.
Comments (13)
  • Sounds exciting! I accept!
    28 Nov 2011, 08:11 PM Reply Like
  • Well, then, let's all go out and short the market, so simple!
    28 Nov 2011, 10:04 PM Reply Like
  • Wow another prediction from an ECONOMIST at a no-name shop. Where is Noriel Roublin S&P 400 when you need him?
    28 Nov 2011, 08:47 PM Reply Like
  • Jakobsen is chief economist at Saxo Bank, Copenhagen -- market value 20 billion DKK, white label partnerships with Microsoft, Barclays Stockbrokers Ltd., and TD Waterhouse. Not exactly a "no-name" shop. Advises high net worth private clients.


    Nouriel Roubini teaches at NYU, former adviser to Geithner.
    28 Nov 2011, 09:08 PM Reply Like
  • good comment.
    28 Nov 2011, 11:06 PM Reply Like
  • Yea Alan all the top talent is at SAXO bank DKK 20bn, which you MAKE up since it is a private company with no liquid: market value. NExt time try converting stuff to US$ which we all do in securiteis world bro' DKK FX <5:1 with US$. Noriel bTW has his OWN firm, and you miss my point about ECONOMIST making market prediction,
    29 Nov 2011, 09:44 AM Reply Like
  • Well heck if we're only talking a week or two I guess I can wait that long for s&p 900.
    28 Nov 2011, 09:49 PM Reply Like
  • MM sees a bottom at 750, lots of his friends will be buying at 800, race to the bottom should be relatively quick with compressed market cycles, will present awesome prices to get into the stock of your choice!
    28 Nov 2011, 09:57 PM Reply Like
  • Can't wait to see massive smoking crater below S&P 950. Feasting on cheap stocks, cashing out shorts, silencing and shaming the liars. How soon can we start?
    29 Nov 2011, 12:22 AM Reply Like
  • Since everyone thinks the markets is going below 1000 it wont happen. In fact, this will be the beginning of the bull run as we decouple from Europe.
    29 Nov 2011, 12:25 AM Reply Like
  • Since every bull thinks the markets owe us an eternal rally regardless of the news, it won't happen.
    29 Nov 2011, 10:22 AM Reply Like
  • okay thanks I called that one.
    30 Nov 2011, 03:34 PM Reply Like
  • He won't be back, and based on his premise that one can track a meteor from light years away, can't the same be said for Europe and their Fiscal Situation? Don't you think banks, central banks, investors, hedge funds, are all aware of the worst case scenario and have raised ample liquidity to prevent this?


    Once that tail-risk event does not happen and since there is big time headline risk, it is safe to assume they are all well aware of the risks and the exact opposite will happen.


    Remember, Politicians have elections to win; they will do whatever it takes to make themselves and the "economy" look good, irregardless of what is burdened to you and your tax dollars. They were blindsided by the Credit Freeze and were unable to act quick enough, here they have ample time to act, and they will do whatever it takes to stop a recession.
    30 Nov 2011, 04:37 PM Reply Like
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