Jefferies economist David Zervos appeared on Bloomberg TV today to paint an optimistic picture of the European crisis, the American recovery, and the prospects for global growth.
Central banks, he believes, will “do the right thing,” and “pretty much throw every euro and every dollar at the problem until it goes away”:
“We have every bit of solution in our fingertips as long as our central banks do the right thing. And I’m pretty convinced, at least on the US side, our central bankers will do the right thing. And I’m pretty sure, with an Italian in charge at the ECB, we’re going to get the right thing done there. The right thing being they’ll pretty much throw every euro and every dollar at the problem until it goes away.”
He reiterated belief in the persistent power of central banks to force investors away from safe assets like Treasuries and German bunds and out into riskier assets through policy easing, affirming his belief that public sector leverage had successfully replaced private sector investment.
Watch Zervos’s full interview below: