Jim Grant was interviewed on CNN last week. He spoke about the European sovereign debt crisis and the unintended consequences of modern monetary policies. Grant does not think that a Greece default would be a surprise, since it has been in the news for over a year. Grant is concerned that 1) it might spread to other countries, and 2) people might fear a crash like 2008 coming again.
Grant has not done specific analysis on the European banks.
He pointed out that any bank takes on leverage, which does not leave much room for error. Grant specifically mentioned Deutsche Bank as a company with too much leverage, 35-1.
Below is part of the video interview (I will post the rest when I find it):
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My investment ideas have been inspired by many of value investors including Benjamin Graham, Charles Royce, John Neff, Joel Greenblatt, Peter Lynch, Seth Klarman,Martin Whitman and Bruce Greenwald. .I live with my wife and daughter in Monsey, NY. I can be contacted jacobwolinsky(AT)gmail.com and my blog is www.valuewalk.com
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