Liquidity Seizure Correctly Predicted

A year ago, Paul Schulte correctly predicted:

"As Europe's problems unwind, liquidity is going to seize up. As liquidity seizes up, multiples are going to contract. Equities are not necessarily cheap. What we are having is a sort of liquidity seizure because of the dislocation in the euro," Schulte said. "If we are not careful, that could tip us back into recession again."

Schulte's views contrast with that of the International Monetary Fund, which said the European debt crisis has been contained and that it still expects global growth of about 4.2 percent this year. Still, Schulte said the euro may continue to slide as "debt restructuring in Europe looks inevitable".

He was right. Schulte was recently hired by China Construction Bank's investment banking unit CCB International.