I cannot, for the life of me, remember where I saw him first. I’m not even completely sure what he was talking about. Whatever it was, he was taking no prisoners.
And, this guy is a Professor! At Harvard, no less.
I never thought that a professor, ANYWHERE, would get my attention, but this guy has. There’s got to be something wrong with this guy that I’ve missed, but until I find it, listen to what he has to say via The Blaze:
November 14, 2011, Becket Adams
Harvard University history professor Niall Ferguson says that Americans should be paying more attention to the eurozone crisis. He believes that the issues facing Europe are going to make their way to the U.S.
Writing in The Daily Beast, Ferguson explains why we should be paying close attention:
The first reason is that, with American consumers still in the doldrums of deleveraging, the United States badly needs buoyant exports if its economy is to grow at anything other than a miserably low rate. And despite all the hype about trade with the Chinese, U.S. exports to the European Union are nearly three times larger than to China.
Indeed, the EU and the U.S. economies account together for about “half the entire world GDP and for nearly a third of world trade flows,” writes the European Commission website.
Consider the $240 billion that the U.S. made from exports to the EU and compare that to the $91.1 billion that the U.S. made from China. It would stand to reason that a total collapse of the eurozone could have disastrous economic repercussions in the U.S.
And Ferguson has more to say.
Europe’s problem is not just that governments are overborrowed. There are an unknown number of European banks that are effectively insolvent if their holdings of government bonds are “marked to market”—in other words, valued at their current rock-bottom market prices.
His fear is that, because of the existence of our present global economy, some U.S. financial institutions will naturally be affected by the euro banks collapsing. Consider the fact that some of the biggest U.S. banks have some sort of “exposure” to euro bonds and banks. If the euro banks become “effectively insolvent,” this will affect the U.S. banks that have investmenst in those bonds.
And, don’t forget to check out this video of Niall in action over the economy: