David Rosenberg told Bloomberg TV this morning that the most likely endgame of the eurozone crisis is likely eurobonds.
While he waxed negative about continuing discord in Europe and noted that some the European populace is beginning to chafe under the whip of austerity, we’ll only see an end to the crisis with a far deeper fiscal union:
“You’re talking about where Germany would have to ultimately acquiesce to make this happen—is to accept a eurobond, a common bond market scenario. If you’re looking for an endgame as to what will finally be a really durable solution for the entire region would be not just a common monetary policy but common regulatory policy when it comes to the banking sector and a common bond market.”
Continuing unwillingness to establish a deeper fiscal union will keep the markets jittery. However, when asked if European problems necessitated a market downturn in the U.S., Rosenberg replied:
“It’s going to probably mean a very choppy stock market. i’m not so sure it leads to a prolonged correction, but it’s going to lead to weak overall risk appetite. That much I’m sure of.”
Watch his full interview with Bloomberg TV below: