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Kathleen Brooks, Forex research director, on Spain’s downgrade from Egan-Jones and the ongoing European debt crisis.
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Reaction today stocks surged early on Greece but cut their losses after Spain got a big downgrade.
News also sent the Euro to a near two year low against the dollar.
Our next guest says it can actually -- even more joining us now -- -- -- -- research director.
Kathleen thanks for being the best in India how about Spain today bouncing bank downgrade worries about run on -- banks and of course whether.
Are not taking -- them.
Well exactly I mean what was quite interesting today is that Greece has she -- the money -- eat to bailout its banks but the big.
I'm nine and that is really lying -- -- is right now is that Spain still doesn't have that money.
It still isn't being -- out and bond deals are really really -- to unsustainable levels.
They're big risk that invest is now face.
If that actually is the money available and that we don't know what we do know is that -- money available wouldn't rating -- -- fall if Spain does need to be about them.
Traffic company right especially because you know Spain was one of it was probably the biggest bar.
Of the long term refinancing operation right from the ECB and most of their loans are property loans -- this almost like.
You know foreshadowing of what could happen here in the United States isn't it.
Well exactly -- chocolate went -- can -- back in 2000 night in the US.
What your bank stated that he very break hyper kid might we don't want these -- stuff.
Let's just be very until an essay how much it is STY downs and yes they have have -- the -- down.
-- women effect here this crisis now and and Spain have -- -- we still don't know it just how bad -- -- banks actually all megas the upsets here in the United States is we have a pretty impressed but you know especially -- Europe does sue.
I know Germany and the Netherlands they don't want to know flicked the switch intern or not but the end of the day Germany's gonna have to put this bill no matter what they do you.
Well I think they will -- they want the -- yours and stay together and I think one thing that we have found out haven laws kind of few weeks.
I -- seen Greece actually is that.
Yes he can push things to the very limits but the breakup of the Tories and the full amount that would cool with knowledge after the content TV puts the wind and economic.
Community claiming they would be Oxley devastating -- and another devastation to Gemini cheese and eventually yes they will not stop printing presses and yes Gemini will.
They would end up paying -- every good fat chunk of all of the belly at the end of it.
You know the markets -- a little bit of -- today on the notion that Greece is gonna stay in the eurozone at the end of the day -- you actually think that's a good idea.
I mean I think I don't know it's a good idea is probably too late have judgment on that he wanted to get -- and they and kids.
Well when they when they saw the prices -- and chic on a 1020 and gag.
And that's when that's when people who shouldn't really try to knit -- that is checks and balance is.
For how -- and operates it I think right now is probably necessary that they.
And is -- necessary for the Greeks themselves because it found that he plunged into depression.
That's -- quickly about China time right now no aggressive stimulus plan in place.
They say they're not gonna do anything like that.
China -- really feel the pains of Europe's awareness -- fallen to all this.
Well I think it's interesting the ECB isn't taking any action it doesn't look like China's gonna take any action.
That really leaves -- the bulk of the heavy carrying on the Fed or is up.
And that's why this week and fifteen -- -- is going to be enormous it is any sign of the names that really could be any film and the banking -- -- lastly.
Stimulate the economy even mall.
Traders love to hear those words Kathleen Brooks stimulate the economy and Wednesday for another Kathleen Brooks -- -- these are stretched out London thanks for being with us.
