Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Greece Will Leave Euro this Summer

Currencies / Euro May 08, 2012 - 08:41 AM GMT

By: Bloomberg

Currencies

Best Financial Markets Analysis ArticleJohn Taylor, founder of the world's largest currency hedge fund FX Concepts, spoke with Bloomberg TV's Erik Schatzker and Sara Eisen and said that Greece will leave the euro this year. He went on to say that, "this summer I think is very likely...the Europeans aren't going to give them money, the IMF's not going to give them an OK. They will be out of money in June."


Taylor on whether Greece will leave the euro after the next round of elections:

"There is another round to go yet as I believe they will have another election in June. Then it will come out the same way or perhaps even worse...This summer I think is very likely. The Europeans will not give them the money. The IMF will not give them an ok. They will be out of money in June."

On whether Germany, France, Spain or Italy will mobilize in an effort to keep Greece in the euro:

"I think that people are feeling the implications of a Greek exit are not so bad. I think Angela Merkel is in a position where she cannot go too far to push the Greeks to stay in or give too much money to them."

On whether there will be chaos if Greece leaves the euro:

"I do not think so. I don't think it will be absolute chaos. I think what will happen instead of them trying to rescue the Greeks, they will turn around and huddle together and say how do we help Portugal and Spain?"

On whether Greece leaving the euro would trigger more nations across Europe to leave:

"There will be a bit of that, but if you talk to not only the political elite, but the political class in all of these countries, they are all in favor of staying with the euro, so I do not they think they will do that until Greece is one year out. No one is talking about Iceland yet. Iceland threw the whole thing in the face of Europe and said to hell with it, we're not going to pay the savior's back, we're going to let our banks go bankrupt, and they've done wonderfully...that is a model for [Greece]. But I must say that Iceland has a lot more assets than Greece does."

On whether now is the time that the euro will crater:

"I have been wrong. There is no doubt about it. A lot of the reason I have been wrong is because of the U.S. The U.S. is determined to help the euro, not to just depreciate its currency, but to give them all the swap lines and the push money out to keep Europe strong. The net effect of the whole thing is that the dollar and the euro have basically been locked together."

On what happens to the euro if Greece leaves:

"I believe it is really up to the ECB. I think the ECB should let the euro go down. To hell with Germany. Germany has a great economy and it's doing wonderfully. So they have a little inflationary problem if the euro goes to $1.10. It will not kill them, but it certainly helps Spain, Italy, and all the other people fight off the Asian import menace that they have."

On what the central banks should do:

"I am not arguing they will stop printing money keeping interest rates at zero. The ECB could get rates lower. Maybe in the next month they will do exactly that. I wrote yesterday that if they had some pluck, some chutzpah, to go out there and say I am going to cut rates and do something different, that would be a very smart thing for them to do. Even if QE3 comes, I do not think it makes any difference. We are basically on this track. We are kind of on a Japanese track. We will have very low rates for a very long time."

On why Greece will be better off outside the euro:

"If they drop the drachma, people will actually go to Greece on vacation. The hotels are not wonderful, but they are nice enough especially if they are marked down 50%."

On whether he still believes that Europe is a sell:

"I do. I also feel passionately that the euro is effectively a break up."

bloomberg.com

Copyright © 2012 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in