Re-Blogged From Financial Sense
Financial Sense recently had the pleasure of speaking with George Friedman, internationally recognized geopolitical forecaster and best-selling author, to get an update on escalating problems in Europe.
George says Greece was not an outlier, but merely a precursor to a much larger battle now taking shape in Italy, the fourth largest economy in Europe. Dr. Friedman is Founder and Chairman of Geopolitical Futures, a new online publication dedicated to forecasting the course of global events.
Here’s what he had to say on Wednesday’s podcast:
“Greece was not an outlier. It was a forerunner, and a lot of the battles that were fought in Greece were precursors to a much larger one, which is Italy.
The Italians have non-performing loans at 17% officially—that’s a very flexible number and you can go up or down—but since most of the non-performing loans are corporate loans, we’ll say that about a quarter of the assets of banks are at risk and it’s the largest ones that are most at risk.