"I Would Recommend You Panic"

Hugh Hendry tells it like it is -- and treats global Keysenian Jeffrey Sachs to an epic smack down.

I would recommend you panic. The European banking system is in a crisis. ... We have no ability to gage the credit worhiness of the banking sector. ... Let's purge this system of its rottenness. Let's take on a recession. It's going to be tough, people are gonna lose their jobs. They are going to lose their jobs anyway. We can spread this over 20 years, or we can get rid of it over 3 years.

Just as remarkable as Hendry's honesty is the degree to which Left-liberal establishment types like Sachs think that sovereign default isn't just bad but somehow impossible. Their historical memory doesn't stretch back much further than this past quarter-century's credit bubble -- perhaps the largest in history. They don't know what is about to hit them.   

[ht: Zero Hedge]