In a very interesting article from BusinessInsider, Joe Weisenthal writes about Wall St analysts coming to similar conclusions that US and Europe are at the point of no return.

First up was Bob Janjuah

It started off with Nomura’s Bob Janjuah. He said that any talk of the ECB saving Europe was a mere pipedream, and that if the ECB did go whole-hog buying up peripheral debt to suppress yields, then that would prompt a German departure from the the Eurozone.

Next analyst is Jim Reid

But then there was Deutsche Bank’s Jim Reid, who is always sober, but not usually wildly negative. He offered up one of the most bearish lines in history in regards to German opposition to ECB debt monetization:

If you don’t think Merkel’s tone will change then our investment advice is to dig a hole in the ground and hide.

then

But it got even wilder with the latest from SocGen’s Dylan Grice. Again, he’s always pretty negative, but he cranked it up a notch, comparing Germany’s policy today against the policies that enabled the rise of Hitler. Specifically, he said that post-Weimar, Germany became too aggressive about fighting inflation, thus prompting deflation, thus prompting more unemployment, thus enabling the rise of the Nazis.

finally

we just received the latest note from Nomura rates guru George Goncalves, which is titled: US and Europe: At the Point of No Return?He writes:

…we were wrong in assuming one could be optimistic around the EU policy process and have learned our lesson not to accept apathy as a sign that all is factored in as its clear downside risks remain. In fact, we could be approaching the point of no return for the fate of the euro, the European financial system and more broadly the concept of a singular economic zone for Europe; this obviously would change the path for the US and the global economy in a heartbeat too. We still believe there is time to prevent worst-case scenarios, but these sort of watershed moments reveal one thing, that market practitioners are ill-equipped to navigate the political process, especially one that is driven by 17 different governments.

If you like that article, here is another from BusinessInsider titled
All a bit gloomy but better the truth than normalcy bias (i.e head up your arse)
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