Credit Suisse Warns of ‘Last Days’ For the Euro

By Javier E. David

The financial storm menacing the euro zone could prompt the 17 nations using the common currency to seek closer integration despite political opposition — or spell the “last days” for the common currency, Credit Suisse said Monday.

In a somber research note to clients, the bank said the debt fears of Europe’s smaller, more troubled economies are now radiating to its largest nations. As a result, Credit Suisse warned that markets may well have “entered the last days of the euro as we currently know it.”

Credit Suisse’s analysts cautioned that a nuclear scenario — a complete dissolution of monetary union — wasn’t immediate or even likely, despite the funding fears gripping both Italy and Spain.

However, the bank added that the current turmoil “does mean some extraordinary things will almost certainly need to happen — probably by mid-January — to prevent the progressive closure of all the euro-zone sovereign bond markets, potentially accompanied by escalating runs on even the strongest banks.”

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via Credit Suisse Warns of ‘Last Days’ For the Euro – MarketBeat – WSJ.

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