- We Will Now See Extreme Turbulence in Global Markets!
Today top Citibank analyst, Tom Fitzpatrick, warned that despite the initial enthusiasm surrounding the Spanish bank bailout, “this is yet another over-promise, under-deliver dynamic coming out of Europe.” Fitzpatrick, a 28 year veteran and top analyst at Citibank, which has $1.3 trillion in assets, also said, “we are moving to the point where we’re no longer going to be able to see the stabilization on false promises and under-deliveries.” He also remained bullish on gold and let KWN readers know when the attention will shift to the problems in the US. But first, here is what Fitzpatrick had to say about the ongoing crisis: “Well, obviously this past weekend we had the announcement that we were going to see some type of bailout package for Spain. But I think as we move through this week there is a certain amount of disillusionment as people look at the structure of it.”
“At the end of the day you are getting a sovereign nation that people are already concerned about in terms of their borrowings. Now Spain is looking to borrow even more money to give to the banks. You are not getting a European type of solution. So we saw a lot of euphoria on Sunday night and early Monday, but that seems to have dissipated. We just had the announcement that Moody’s is downgrading Spain, so equity markets came off late in the day. At the same time we’ve seen the yields in Spain and Italy go straight up again, pushing right back towards the trend highs….