How the Dangerous Euro Crisis Will Play Out for America, According to Influential Newsletter Profit Confidential

Top Quote Profit Confidential, a leading financial e-letter, says that U.S. banks will be hit hard if the eurozone crisis continues. End Quote
  • Bellingham, WA (1888PressRelease) November 24, 2011 - According to Profit Confidential, the big news is that Fitch Ratings service issued a warning for U.S. banks. Fitch may lower its credit ratings of the large U.S. banks if the eurozone debt crisis is not resolved. U.S. bank stocks got hit hard on the news. Bank of America Corporation (NYSE/BAC) stock now trades at $5.90. Michael Lombardi, lead contributor to Profit Confidential, wrote months ago that he wouldn't touch this stock.

    Lombardi outlines the details, "In the event the ECB [European Central Bank] does not bail out the troubled eurozone countries, the majority of eurozone countries will need to approve this action; the U.S. government will come to the aid of big American banks whose financial stability is jeopardized by eurozone country bond defaults."

    Profit Confidential states that the problem stems from countries in the eurozone such as Ireland, Portugal, Greece, Spain and Italy. All these countries have a very high national debt to GDP ratio. Italy is of the biggest concern, as it is the third largest economy in the eurozone after Germany and France.

    According to Fitch, the direct eurozone debt exposure to the big American banks, being JPMorgan Chase & Co. (NYSE/JPM), Bank of America, The Goldman Sachs Group, Inc. (NYSE/GS), Wells Fargo & Company (NYSE/WFC) and Morgan Stanley (NYSE/MS), is $50.0 billion.

    So far, the eurozone crisis has claimed the governments of Greece and Italy. The shares of the big French banks are dropping like a rock because of their exposure to Italian-government issued bonds. It's a "pyramid effect" mess in the eurozone.

    Lombardi describes his prediction on how this will play out, "The European Central Bank (ECB) will come to the rescue and buy the bonds of the troubled eurozone countries, just as the U.S. Federal Reserve purchased the debt of the U.S. government. To accomplish this, the ECB will need to print more euros."

    Can anyone say "inflation?"

    Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it "begged" its readers to get out of the housing market...before it plunged.

    Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

    To see the full article and to learn more about Profit Confidential, visit

    Profit Confidential is Lombardi Publishing Corporation's free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit

    Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi's current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit

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