Gary Shilling of A. Gary Shilling and Co. is warning of an increasingly dire global economic outlook. Shilling has been one of the more accurate macro forecasters in recent years with excellent calls on US Treasury bonds and a lingering malaise in the USA. He is now becoming increasingly concerned about the global economy.
He says Europe is in the same situation the USA was in 2007 where a financial crisis is worsening an already bleak economic situation. Shilling says the Euro is possibly heading to parity with the dollar, but he sees a stop at 1.20 in the near-term. He cites the fact that broad economic exposure to Europe is small in the USA, whereas the financial sector has substantial exposure to the region. You can watch the full interview below:
Source: Bloomberg TV