Tags: Schlossberg | eurozone | tenuous | union

Money Manager Schlossberg: Eurozone Is 'Very Tenuous Union'

By    |   Thursday, 04 September 2014 09:17 PM

The European Central Bank announced an intensification of its easing program Thursday, cutting interest rates to record lows (making them negative in some cases) and announcing the start of quantitative easing. 

But the moves didn't make a believer out of everyone, especially given the Bundesbank's opposition. 

Boris Schlossberg, managing director of BK Asset Management, is one of the non-believers. The eurozone is "a very, very tenuous union in many ways, and we see the conflict come to the forefront anytime we have these issues," he told CNBC.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

Germany's obstructionist stance "could become a very serious problem," he said. "We'll be watching the conflict very carefully in the fall and into the winter to see just how serious the Germans are in their opposition to this move."

The euro dropped 1.6 percent Thursday, its biggest one-day fall since November 2011, thanks to the ECB's actions. The currency traded at $1.2944 late Thursday. Schlossberg thinks it will ultimately decline to $1.2850.

Many experts expressed mixed views about the ECB's stimulus measures. "It's a positive step by the ECB," Carl Weinberg, chief economist of High Frequency Economics, told The New York Times. "No matter how you look at it, monetary policy has done all it can."

Many economists say the problem lies with the fiscal austerity programs that eurozone nations adopted after some of them suffered debt crises in recent years. Those programs have stifled economic growth, critics say.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse 

Related Articles:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Finance
The European Central Bank's aggressive easing Thursday didn't make a believer of Boris Schlossberg, managing director of BK Asset Management.
Schlossberg, eurozone, tenuous, union
282
2014-17-04
Thursday, 04 September 2014 09:17 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved