Granite Springs' Vincent Truglia on the US Debt Ceiling, "Messy" Euro Outlook

Benzinga Radio's Matthew Boesler and I spoke with Vincent Truglia, managing director at Granite Springs Asset Management, regarding the unfolding Eurozone situation and possible US exposure. According to Truglia, the most immediate concern for the US is an agreement on the debt ceiling issue: “You don't want to have a meltdown in Europe occurring at the same time that people are worried about US Treasuries.” If such a scenario were to play out, the US, whose bonds have traditionally been a stable destination for capital in times of market turbulence, could be left hurting. For Truglia, a resolution to the Eurocrisis is “really a question of the shape of the Eurozone.” Will core countries like France and Germany continue to support the periphery? They are increasingly unwilling and unable, says Truglia. As it becomes clear that the problem of insolvency in Greece can no longer be put off, Europe will be forced to make its decision sooner rather than later. “The Eurozone leadership is faced with an untenable situation in the medium term – investors already recognize that. Now they have to deal with it during a crisis.” Is there hope for a smooth transition in Europe? Truglia: “No matter what happens, it's going to be a bit of a mess.”