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."

- Eric Sprott via a interview with Seeking Alpha, read the full interview here:

http://seekingalpha.com/article/700311-exclusive-interview-eric-sprott-on-the-world-economy-and-the-financial-markets-part-i