Plan Fiduciaries Should be Paying Attention

Will the European Central Bank step into the market and buy European Sovereign Debt?   That’s the $ trillion question.

Articles abound trying to predict the future.  Will the ECB cave or not?   No one can be responsible for an accurate prediction of the future.

These debates have been brewing for 18 months.  Bankers, however, are getting nervous.In Banks Build Contingency For Breakup Of the Euro, Liz Alderman reports that banks are developing plans in the event that unimaginable break of the Euro in fact comes to pass.

While analysis and hand-wringing serve a purpose to highlight and issue, nothing takes the place of contingency planning.

Beginning with my blog post on July 25, 2010, Debt, Debt, Debt, I have been warning plan fiduciaries that they need to be monitoring the impact of the European debt crisis on their own portfolios and trading strategies.

If the Banks, which were universally “asleep at the switch” in the lead up to the sub-prime crisis are now wrestling with contingent planning with respect to the impact of European sovereign debt, it behooves plan fiduciaries to be engaged in similar planning.

Continue Reading