The panic over European debt is exaggerated, says Jeffrey Sachs: "I am not too impressed by this...


The panic over European debt is exaggerated, says Jeffrey Sachs: "I am not too impressed by this panic. I think Spain, Greece and Portugal are solvent. I think they are creditworthy... this [panic] will go away in a few weeks."

Comments (6)
  • Tack
    , contributor
    Comments (16267) | Send Message
     
    Couldn't have said it better.

     

    Without an exchange-rate play for short traders to exploit, the EU will work out the economic details on their own terms.
    8 Feb 2010, 01:23 PM Reply Like
  • bearishondisco
    , contributor
    Comments (50) | Send Message
     
    Sachs has no credibility.
    8 Feb 2010, 01:24 PM Reply Like
  • hightempo
    , contributor
    Comments (4) | Send Message
     
    Why are the CDS spreads reaching record levels on a daily basis??? Are the buyer of the CDS just stupid. The hedge funds are attacking the weakest euro countries trying weaken the euro. The same thing is happening with the hedge funds shorting muncipal bonds in USA to trigger higher CDS spreads on US debt as the USA is forced go guarantee state debt. Sovereign debt is under attack. The equity markets realized this threat and equities have declined 9% over the past 8 trading days. The largest financial entities in the world (USA, EU and UK) all have weakened balance sheets and have growing debt to GDP ratios and deficits. In three weeks, the situation will only be worse and equities will be lower.
    8 Feb 2010, 01:37 PM Reply Like
  • nightfly
    , contributor
    Comments (1015) | Send Message
     
    The PIGS they themselves aren't really the issue...they are a proxy currently for what could start happening to non-PIGS, like the UK and eventually the good ole printing press support economy of the USA.
    8 Feb 2010, 01:38 PM Reply Like
  • HiSpeed
    , contributor
    Comments (1300) | Send Message
     
    Sure, everything is fine - nothing to see here - similar to the start of the housing crises
    8 Feb 2010, 01:49 PM Reply Like
  • zorrow
    , contributor
    Comments (2602) | Send Message
     
    Sachs makes sense to me. I'm going to buy a little STD here. If he's wrong I guess I'll take a loss. If he's right, maybe I'll make a few bucks.
    8 Feb 2010, 02:38 PM Reply Like
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