Odey on Europe: A decade in the wilderness?

Hedge fund veteran Crispin Odey has given his take on the "depressing story" playing out in the eurozone, suggesting beleaguered Europe and the resilient US could move in very different directions.

The founder of Odey Asset Management (pictured) said Europe’s banking sector still faces borrowing costs that are far too high, despite record low interest rates. “Europe looks very much like Japan. European banks and most UK banks are having to borrow at an average rate of 2.5%. Whatever interest rates fall to, that is not their borrowing cost because they are all short of deposits. “That means real interest rates in Europe are unfortunately too high given levels of indebtedness, and the banks are too unprofitable,” he said. “The banks will thrash around like the Japanese did. We ...