It seems that big time money managers are seeing trouble brewing in France.
Fink joined Dalio in pointing to France as a potential
trigger for problems in the euro region. Fink, who called France
“structurally uncompetitive” last year, said today that
country may be the cause for an eventual failure of the euro
currency.
Dalio said today the next major financial crisis will come
from France because of a rise in debt-service payments that will
have a “constrictive nature” on the economy. He said France’s
debt will be difficult to roll over, resulting in funding gaps
and wider credit spreads that will make the debt-service
payments more difficult.
Fink runs $4.1 trillion in assets and Dalio $150 billion so they probably have access to information that is pretty far over most investors heads. I know that some European economies will start getting hurt if interest rates rise since they have so much debt they have to roll over. The French are already trying to tax rich people with that 75% tax on earnings over $1 million Euros which caused Gerard Depardieu to flee to Russia.
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