In the aftermath of what has been a wild couple of weeks of trading, today a former associate of George Soros told King World News that “A thousand Lehmans” event is going to plunge the world into total chaos.
Victor Sperandeo oversees over $3 billion, has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below is what Sperandeo had to say.
Victor Sperandeo: “The big story for 2017 will be the breakup of the euro and it will unleash total chaos…
Victor Sperandeo continues: “Individual currencies such as the lira will come back in Europe and everybody will write-off the debt. This will unleash total chaos and Europe will go into depression.
If Marin Le Pen wins in France, the euro is toast. France will pull out of the euro and other countries will follow. The world will witness the destruction of the euro and money will flee into hard assets such as gold and silver. But it will be chaos. It will be destruction. It will be a depression.
Italy will leave the euro as well. Beppe Grillo, leader of the Five Start Movement, is going to be the next Premier of Italy and he wants out of the euro. And as soon as Italy leaves and they have control of their own currency, they will have their own central banks buy their own bonds and write them off and print the lira. Just look at Britain. The plunge in the pound is not hurting them at all. Britain is selling more goods. That’s the purpose of being able to control your own currency.”
Eric King: “How will this ricochet across global markets?”
“It’s A Thousand Lehmans” Event
Victor Sperandeo: “Look at what happened after Lehman, and ask yourself, ‘What is the euro relative to Lehman?’ Answer: It’s a thousand Lehman’s.
All of these Italian banks — the big ones — are bankrupt. They have 400 billion euros of non-performing loans. Where is Italy going to get the money to pay that back? They are going to have to print it. They will get the Italian central bank to print the money and give it to the banks. But what happened when Lehman folded and before Bernanke and Paulson could get the TARP money? The markets crashed. They had to come in with one trillion dollars and that saved the game.
So this will be catastrophic. Assuming countries leave the euro, that’s where we’re headed. When Renzi lost in Italy, it pointed to the fact that Italians also want to leave the European Union.”
Eric King: “As this unfolds and ‘It’s a thousand Lehmans,’ what happens to the United States?”
A Bad Moon Rising
Victor Sperandeo: “The global banking system is interconnected and Deutsche Bank has over $45 trillion in derivatives and JP Morgan has now overtaken Deutsche Bank as the leader in total derivatives exposure. So this will be horrible and I don’t even think I can describe how horrible it will be because I don’t even know all the negatives that are being hidden by the governments. People should get the lyrics to the song Bad Moon Rising and read them carefully.
I will just close by saying that grains, gold, silver and platinum are the most undervalued objects in the world. And as the financial system begins to implode, some of the money will flow into those metals as the panic into hard assets really takes hold.”