Econintersect: Alan Valdes (pictured) of DME Securities says Italy, with 17% of GDP in the EU (European Union), is too big to fail. For the EU to survive the ECB (European Central Bank) must create the currency needed to service the Italy’s sovereign debt and bring interest rates back down to a level that can be handled by what Italy can produce. Valdes gives his view, in an interview at TheStreet.com, that the result will be a significant rise in the dollar, damaging U.S. companies’ earnings (and U.S. stocks) and problems for Chinese exports . The interview video follows the continuation break:
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