Euro zone banks continued their slide Thursday, down more than 25 percent this year. Political issues, such as border control, also remain key concerns for European Central Bank policy, Englander said.
“Getting the strongest growth possible is the best way of avoiding these tensions and I think that’s what they’re going to go for,” he added, referring to ECB President Mario Draghi’s recent speeches. “They have to avoid tanking the banks, which are clearly vulnerable.”
Equities and credit around the world, Englander said, are the asset classes leading the charge and spilling into the foreign exchange market.
“Look at three to five years out, the market is pricing in this prolonged period of weakness,” he said. “I think that’s what the deep fear is in the market.”