Mike Shedlock

Via email, the chief economist for Saxo Bank in Denmark, Steen Jakobsen, discusses the "Saturation Point" for QE and the "Fiscal Cliff" in the US.

Steen writes ...


Fiscal Cliff Comparisons

  • A lot of people are starting to compare 2012 with 1987. Yes, it's scary.
  • Other people compare the fiscal cliff to 1937 Roosevelt where stock market tanked 50%.
  • Few people seems to realize that part of the "fiscal cliff" involved higher taxes on financial transactions, meaning it's prudent to take your profit and pay the tax in 2012.
  • Greece is doomed. A headline today read : Soros to invest substantial amount in Greece - He did the same in Russia in 1998 - just before they defaulted.
  • All EU solutions on the table: banking union regulation probably needs treaty changes - we are at the end of line.

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.
TOWNHALL FINANCE DAILY

Get the best of Townhall Finance Daily delivered straight to your inbox

Follow Townhall Finance!