Pattullo: QE not a bad solution for Europe

Henderson's head of fixed income John Pattullo said Europe must print money and recapitalise its banks in order to combat its sovereign debt crisis.

Speaking prior to Moody's downgrade of France's Société Générale and Crédit Agricole, Pattullo said European banks had "broadly speaking, got through the crisis intact" but suggested further capital injections are now necessary, noting such institutions had lagged other Western peers in recapitalising. "Most people think Greece will default in the next month or so, but everyone is worried about the contagion effects. Broadly speaking, European banks could tolerate Greece defaulting and write down their Greek bonds, but the market would then go after Portugal, Ireland and Italy." Pattu...