- Eric Sprott via a interview with Seeking Alpha, read the full interview here:
Wednesday, August 22, 2012
Economies Have Run into a Bit of a Roadblock
"I have always believed that one of the world's fundamental flaws is the leverage in the bank system. As you might be aware, the typical leverage of a European bank is something like 30 to 1. This means you have roughly 3 cents of capital supporting $1 dollar of assets, and as these economies have run into a bit of a roadblock (the best examples are Greece and Spain), you find out that values were too high."
at 11:07:00 AM