How the Dangerous Euro Crisis Will Play Out for America, According to Influential Newsletter Profit Confidential

New York, NY (PRWEB) November 22, 2011

Profit Confidential, a leading financial e-letter, says that U.S. banks will be hit hard if the eurozone crisis continues.

According to Profit Confidential, the big news is that Fitch Ratings service issued a warning for U.S. banks. Fitch may lower its credit ratings of the large U.S. banks if the eurozone debt crisis is not resolved. U.S. bank stocks got hit hard on the news. Bank of America Corporation stock now trades at $ 5.90. Michael Lombardi, lead contributor to Profit Confidential, wrote months ago that he wouldnt touch this stock.

Lombardi outlines the details, In the event the ECB [European Central Bank] does not bail out the troubled eurozone countries, the majority of eurozone countries will need to approve this action; the U.S. government will come to the aid of big American banks whose financial stability is jeopardized by eurozone country bond defaults.

Profit Confidential states that the problem stems from countries in the eurozone such as Ireland, Portugal, Greece, Spain and Italy. All these countries have a very high national debt to GDP ratio. Italy is of the biggest concern, as it is the third largest economy in the eurozone after Germany and France.

According to Fitch, the direct eurozone debt exposure to the big American banks, being JPMorgan Chase & Co., Bank of America, The Goldman Sachs Group, Inc., Wells Fargo & Company and Morgan Stanley, is $ 50.0 billion.

So far, the eurozone crisis has claimed the governments of Greece and Italy. The shares of the big French banks are dropping like a rock because of their exposure to Italian-government issued bonds. Its a pyramid effect mess in the eurozone.

Lombardi describes his prediction on how this will play out, The European Central Bank (ECB) will come to the rescue and buy the bonds of the troubled eurozone countries, just as the U.S. Federal Reserve purchased the debt of the U.S. government. To accomplish this, the ECB will need to print more euros.

Can anyone say inflation?

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $ 300 an ounce. In 2006, it begged its readers to get out of the housing market…before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit

Profit Confidential is Lombardi Publishing Corporations free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardis current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit


Tags: , , , , , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]