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Is those banks and a new move into New York wanna bring in Alan -- from right now and you say that the roller coaster whether it's.
It's -- -- whether -- the United States is far from over why do you say about Alan.
Unfortunately prisons that the political Will Power currently in in Europe.
Nor in the US to deal with the magnitude of the problems that the -- crisis has brought on.
If you look at the numbers the European financial stability fund.
Has about 440 billion euros at its disposal unfortunately estimates are that there as many -- -- drilling euros -- the problems that have to be dealt with.
Ultimately that's to be confidence on the part of investors.
And ultimately consumers that that government is gonna come in.
Create a much larger facility coupled with support from the ECB and ultimately.
German taxpayers and other wealthy Europeans are gonna have to subsidize.
Citizens in countries in Portugal Italy.
Ireland Greece and Spain in the absence of that we're gonna see more band aid solutions to what's really needs to have a tourniquet in place to solve the problem.
A -- of what Dennis and He had an ECB officials saying overnight comparing the eurozone to Japan it is Swiss official talking that the Interbank system could well -- In Europe and all of these really negative comments.
It -- yeah.
Curb some of the loose talk you know all bond broker -- of attention this morning called it can we all just please come down I mean let's -- so they got -- was just talking about the European debt situation the US debt situation.
Decades in the making OK and it will take years to figure our way to work it out it does not happen to lead to a stock market -- today does it.
I don't think so I complete idiot.
This is but well -- on our way back up a little bit right now we're down a little 500 a few minutes look at our -- -- -- floor -- -- -- -- obviously Nicole and mean a lot of the concern about -- -- and it's about the financials at the end of the day.
And this is different than 2008 we know that but this is about the financials.
How much exposure.
DUS based banks -- zero banks and also your HSBC your Barclays.
Your Credit Suisse that have major operations in this country.
And what -- what happens of those operations of that is looking at that there is.
-- -- Well that is some of the traders have been noting that they are looking at the US arms of these foreign banks to see.
How much liquidity have what you don't want is you don't want it all freezing up in.
And who exactly was the -- bank exactly was the one that hit that emergency lending facility because basically -- -- -- the private route.
So you are seeing a lot of these banks getting hit -- the banking index has been to the downside the financials have been driving this market last week on our way up and our way out.
Financials have been the group that really leads the way up or down so.
Right now I have -- -- I'm not hear anybody saying great opportunity.
On the contrary it's very much to wait and see and there were about what might come out of a hearing and you'll pay what they wanted out of that press conference yesterday -- I think you're right Nicole and also -- mean you look at the huge move today again ended treasuries the yields are -- lows that we didn't we haven't seen since last Tuesday.
And then again you're talking about the gold contract and He -- -- at this point that.
We're near capitulation even discussing capitulation -- and more about more volatility ahead.
I I we're gonna have more volatility that's a given that we could be very close to capitulation.
What you really wanna look at the lows on the recipes.
That that He sought to reading the big selloff.
I believe it was last Thursday in that area at that time it looked like the world was gonna and it -- like the stock market would never came back.
And we get.
I think if we doubt the test those areas today and we don't get any more bad news.
On the European banking front -- those fears come back you could see this fight back -- so.
That just the definition of that is volatility on the other hand if you look figure get more banks and traveling Europe.
Odd then I think you see another wave of here we could take those laws out now I have my -- as we're coming back.
OK -- you say that we should be getting defensive you say that we should be looking at companies.
Big caps with international exposure.
That can protect our portfolio couple of -- like -- Well as an example on -- mean that the act -- fund -- fortress companies such as Microsoft Procter & Gamble Pepsi cola Coca-Cola.
You're looking for businesses where the majority the earnings -- revenues come from abroad.
You're selling -- countries that are stronger currencies are strong they translate back into a weak dollar.
-- strong balance sheets frankly -- better position right now from a financial perspective the most governments.
And are likely to grow earnings even in a recession is possible probably grow earnings in those kinds of companies.
You also say that we should really looking -- government bonds fiscally strong government bonds and some of your picks are actually besides Canada.
It's actually Australia and it really talks to the I would I had to urinate.
That's okay but if -- and country where the government's got a strong fiscal position.
It turns out that the currencies like -- appreciate because in the end the currency is nothing more than a translation of the strength of underlying government and right now it's pretty clear.
They Euro and the dollar -- going to be weak and most countries -- falls following strong policies Norway Australia Canada.
Those countries' currencies are likely to continue to appreciate over time.
And -- I had Austria my head because they're the ones that won't work collateral from grace I mean every country is got a voice -- mentioned the rhetoric continues.
But -- saying that we've got to get defense and you got to look at consumer Staples defensive plays the protect.
-- -- -- -- And yet is it doesn't have the best thing to buy in the entire world.
The US treasury ten year it's up four and a half percent since the S&P downgrade said that it's worth less than we shouldn't be owning it because it's too risky.
And it's utterly risk free the governor is not going to default on a ten year treasury and you're guaranteed affordable -- capital term policy interest you -- mean why -- anything right now but ten years.
Well no I think Alan I think you're avoiding risk really heavily is -- financials correct.
I asked him avoid two things I'm largely avoiding financials and frankly.
I'm avoiding money market funds -- -- by treasury bills because if you on a money market fund.
-- effectively lent money to banks in your only -- summer between.
Ten to fifteen basis points but arm of money market funds still guaranteed by the government the -- bank deposits are in the wake of that note that we didn't lift that -- their right there's still uncovered on the money market.
-- I believe you're covered up to 250000.
But beyond that I'll have to kind of have to worry beyond that my friend.
Nothing but a real lot to worry about but that's we've got great guys like Alan -- from -- -- capital and of course the call of the Phil thanks all of you will see how these markets critical we'll see you would just a little bit accelerating we check in with her throughout the hour.
The -- was down for a three right now.
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