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You’ll get income and a chance to ride the wave that usually comes at the end of the quarter, says Louis Navellier of Blue Chip Growth in this exclusive interview with MoneyShow.com.

Louis, you’re just back from Europe. How does it look there versus how it looks here in the US?

Well, ironically, I was in Spain and Italy during the crisis. Life went on, and nobody seemed to know a thing that was going on.

Any riots there?

No, but when you turned on the TV, I did notice the Italian Parliament is a little different. Over there, the politicians like to insult each other face to face versus through different media channels here. They have a little more passion over there.

But the crisis was because the European Central Bank did not want to help Italy and Spain unless they did some structural budget reforms. So after the ECB meeting in August, Trichet (the president of the ECB) basically broke precedent and said that we are intervening, but we are only intervening with the ones that are doing what we want them to do, which was Ireland and Portugal.

Then the other central bankers were insulting each other after the meeting adjourned. What happened is, Berlusconi was very defiant.

He is just defiant, period…right?

Well, he has other problems.

Yes.

Then on Friday, he did a flip-flop. He basically caved, apparently. French President Sarkozy and German Chancellor Merkel got to him, and then on Sunday the ECB started to buy the Italian debt and the Spanish debt.

What happened is because the banks over there hold a lot of their bonds, his yields were going up and his principal was eroding and now the yields are coming back down with ECB intervention, though the principal is being restored.

We did have a banking crisis start in Europe. It was very serious, and when that domino fell, it is hitting our dominos here in the United States, and the more international banks, and the ones that are deemed that might have a lot of government help—like Citigroup (C) and Bank of America (BAC) are really having a hard time.

The only real risk here long term is that the LIBOR rate doesn’t go up. Back in 2008, the price was totally different, with credit-default swaps, leveraged debt, and the commercial paper market collapsing (it was a long story)…but as long as LIBOR doesn’t skyrocket, we’re okay.

That is the London interbank offer, right? What they charge between each other?

Correct. What happened is in 2008, they didn’t know who had the Lehman paper. So no one trusts each other.

We want to make sure that that LIBOR rate doesn’t go up, so the ECB is essentially doing quantitative easing by buying bonds and they don’t say where the money is coming from. Of course, our Fed has come out saying they are not going to raise rates for at least two years.

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