Four Main Reasons Europe is Likely to Collapse

Here is a summary of an excellent article from Financial Sense on why Europe is likely to collapse

•  The European banking system is leveraged at 25 to 1 (twice that of the U.S. e.g.) so a 4% decline in equity wipes out capital!

•  European financial corporations operate with debt of 148% of total EU GDP!

•  Euroland banks have to roll over from 15% to 50% (depending on the bank) of their total debt by 2012.

•  Many Euro nations have massive unfunded liabilities. The typical Euro nation would require 400% of its GDP to be banked earning interest to cover these… not possible.

For the full article GO HERE