Tags: Forbes | Europe | austerity | Greece

Steve Forbes: Europe 'Seems Intent on Going Over the Cliff'

By    |   Tuesday, 10 February 2015 01:37 PM

Steve Forbes, chairman and editor-in-chief of Forbes Media, isn't too impressed with how Europe is handling Greece's debt crisis.

"They seem intent on going over the cliff. I just hope they don't drag us with them," he tells CNBC.

The new Greek government seeks major debt relief, but fellow European nations, particularly Germany are resisting that idea.

Forbes scoffs at the austerity that has been urged by the European Central Bank, International Monetary Fund and European Commission. "Their sense of austerity is: 'Don't hit the government too hard and smash the private sector with higher taxes and new regulations,'" he notes.

But the German solution — "tighten up [and] starve to death" — isn't so hot either, Forbes explains. "So both sides in this don't have it right in terms of how you get these economies back on their feet."

So what is needed? "Stable money, low tax rates, sensible regulation" would help Europe recover "pretty quickly," he argues.

Ed Butowsky, managing partner of Chapwood Capital Investment Management, sees danger in Europe too. While he's not worried about Greece per se because its economy is small, "it does pull down the European economy, which is what I am concerned about," Butowsky tells the "Steve Malzberg Show" on Newsmax TV.

Indeed, Europe is his biggest concern, Butowsky asserts. "We're going to see a deleveraging of the banks where they're going to go from 30-to-1 to 10-to-1 in terms of the ratio of assets to debt and when that happens, we've got problems."

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Steve Forbes, chairman and editor-in-chief of Forbes Media, isn't too impressed with how Europe is handling Greece's debt crisis.
Forbes, Europe, austerity, Greece
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2015-37-10
Tuesday, 10 February 2015 01:37 PM
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