French President Sarkozy’s younger brother, an investment banker in the US, is on CNBC this morning. He is extremely bearish on the European outlook based on the banking sector. His major concern is that European banks fund themselves primarily in wholesale markets. When the US banking sector froze up after Lehman, the whole sale funding markets accounted for about $3 trln in bank funding. Olivier Sarkozy says that the wholesale funding market in Europe is the equivalent of $30 trln.
Truly to big to fail…Looks like the ECB better crank up the printing presses…
