Fitch warns of ‘cataclysmic’ euro collapse

From SMH.COM

The European Central Bank should ramp up its buying of troubled euro zone debt to support Italy and prevent a “cataclysmic” collapse of the euro, David Riley, the head of sovereign ratings for Fitch, has warned.

Speaking to investors as part of a European roadshow, Mr Riley said a collapse of the euro would be disastrous for the global economy, and while it is not Fitch’s baseline scenario, it could happen if Italy did not find a way out of its debt problems.

“The end of the euro would be cataclysmic. The euro is a reserve currency,” Mr Riley said overnight. “What would that do in terms of financial and political stability?”

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Read more: http://www.smh.com.au/business/world-business/fitch-warns-of-cataclysmic-euro-collapse-20120112-1pw7s.html#ixzz1jN976rxv

About Eeyore

Canadian artist and counter-jihad and freedom of speech activist as well as devout Schrödinger's catholic

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