Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

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.


© 2005-2019 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