Get the checkbooks out, because the flight into gold is about to commence, says economist and NY Times best selling author Dr. Stephen Leeb. But a liquidity crisis sell off in goldmay provide that opportunity, first.
The dramatic move by six central banks on Wednesday to lower dollar swaps rates flashed a big red light to markets that liquidity, which has been drying up between banks in Europe, had become acute and created the risked of another 2008 Lehman-like meltdown event, taking the U.S. banks along with Europe’s down the path to Armageddon.
“There are liquidity concerns right now. I think the world, and in particular Europe, really does have a liquidity problem,” Leeb told King World news on Monday. “If Europe has a liquidity problem that obviously has the potential to affect everybody, especially the U.S.”
