Leverage and counterparty risk

Watch the full 32-minute video at http://www.goldmoney.com/sprott-turk-munich. Eric Sprott, Chairman of Sprott Asset Management, and James Turk, meet in Munich and talk about the very hard choices between austerity and increasing stimulus and how both will bring on a meltdown, whether through bankruptcy or hyperinflation brought on by money printing. They talk about the huge leverage in the banking system and the risk inherent in the system. People are only now starting to understand counterparty risk. They explain that 20-to-1 and even higher leverage is common in the banking system.

This interview was recorded on November 4th 2011 in Munich.