Larry McDonald, a Senior Director at NewEdge, says this weekend is huge.
It looks like everything is lining up for a potential globally supported backstop facility called the EFSF, the European Financial Stability Facility.
“The market is starting to figure out that this EFSF has greater buying power than we originally thought,” he says.
And coordination among officials is finally starting to come together.
The G7 met last Saturday. This week, the Euro financial ministers again meet in Poland. Next week in DC, BRIC countries meet in Washington, and we have a Fed meeting. “So it’s all lining up for a potential globally coordinate support of this backstop facility,” he says.
And if you get the G7 behind the EFSF, he thinks, the EFSF facility might be the “bazooka” that Europe needs.
The EFSF is somewhat similar to TARP.
“If you look into the language of this facility, it has a lot of TARP like qualities – it can invest in banks, it can buy bad assets.”
McDonald, who is also president, founder of the McDonald Advisory Group and author of the New York Times bestseller A Colossal Failure of Common Sense – the Inside Story of the Collapse of Lehman Brothers, describes how the EFSF could help Europe.
Produced By: Kamelia Angelova and Robert Libetti
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