In an interview with Bloomberg Television in London, Charles Goodhart, former Bank of England policy maker said today that Greece’s bailout may collapse and its debt crisis makes it hard to see how the euro will survive in its current form.
“If this financing deal should collapse, and it might for one reason or another, then there would be a question of what the Greeks could possibly do,”
“Default would be totally disastrous for them and leaving the euro would equally be disastrous.”
“It’s very hard to see how this is going survive this particular test,”
“The euro system has either got to have much more integration or parts of it will fall by the wayside.”
“If the current bailout is put in place, it will be enough to meet their immediate financing problems not only this year but for the next year or two,”
“The problem is that it doesn’t meet their adjustment problems. It doesn’t deal with the problem the Greeks, in part from having too large a deficit and too large a debt ratio, are very uncompetitive and if they actually cut back the deficit as fast as is being required they’re just going to go into appalling deflation.”
Of the deal faild, Goodhart added that Greece “might do a kind of dual currency in which they use their scarce euros to meet their external commitments and in the meantime use an internal IOU, rather as Californian and some of the Argentinian states did, in order to meet their internal commitments”.
“It would be a dual currency and the internal currency would fluctuate compared to the euro.”
Goodhart conludes that Such an exercise would be very messy.
Note that we regularly post straddles on the Euro throough the FXE ETF, whcih have been quite profitable.
Tuesday, May 4, 2010
Former BoE Policy Maker: Greek Bailout May Collapse, Consequences Will Be Disastrous
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2010
(1051)
-
▼
May
(89)
- Latest Roubini: Double Dip, Banks Are Back To Old ...
- Brazil Becomes a Model for Argentina.
- Now France Faces Challenges to Keep AAA Rating
- Spain Loses AAA Rating, Stocks Plunge
- Oil Leak: Profit From BP Going Up or Down
- ToysRUs To Raise $800M in IPO to Pay Debt, GS, BAC...
- The BP Disaster: Another Bigger Oil Leak 5 Miles Away
- Live Feed Of BP's Oil leak; BP May Not Survive
- Sprott: Governments Have Run Out of Ammunition, St...
- More Roubini: Euro To Weaken Further, Serious Diff...
- Marc Faber: Still Very Bearish But Are Oversold In...
- Forget The Rating Agencies: Banks, GS and BNP Pari...
- Banks Need To Raise Another $1.5T
- Federal Housing Administration: Mortgage Market Is...
- Interview With Sam Antar: No Redemption; How Crimi...
- Currencies Are In Chaos Today: Huge Volatility Is ...
- The Top 30 ETFs To Buy and To Sell
- It Is Coming: One Euro = One Dollar
- Greatest Month Ever For Oil Straddles: +403.72%
- Europe is Disjointed: With Friends Like Merkel, Wh...
- Gold Bubble: Gold Buyback Program Coming to Kmart ...
- Richard Russell: Get Out of the Markets, Now
- Park: Deflation is Back in Play; Government Money ...
- Goldman Sachs Perfect Trading Record is Perfect Fo...
- Euro Stabilizes Overnight
- Germany Makes Mistake of Severe Consequences by Ba...
- Oil Continues To Drop, At Perfect Price for June U...
- Ex-Bundesbank Chief: Greece Will Never Repay Debt,...
- Roubini: Second Stage of Financial Crisis is Here;...
- Latest Meredith Whitney Predictions: Rest of 2010 ...
- Are we Having Inflation or Deflation, or Both? Pro...
- China Buys U.S. Treasuries For the First Time in 6...
- Oil and Euro Continue to Sink, Straddles ROI Is +2...
- Eichengreen: Bailout Package Came Too Late: Europe...
- Gold Is Soaring: The Top ETFs To Buy or To Sell
- Oil Crashes: Top Oil ETFs To Buy and To Sell
- Oil Crashing This Week, Profit From Oil Going Up o...
- Financials Cratering and TLT Soaring, Straddles +243%
- 93% of Canadians Have Never Missed a Mortgage Payment
- France Threatened to Quit Euro: Bailout or Else; E...
- Why Natural Gas Should be Shorted or Sold
- Why Stocks Are Tanking Today
- The Euro is One Sick Currency: Multiple Sell Signa...
- BP and Transocean Fight: Serious About Recycling
- Spain and Europe Are Introducing 1930's-Like Depre...
- U.K's New Coalition Government Plans Breakup of Bi...
- Not Only GS, But Also Bank of America, Citi, and J...
- Gold Soars: Yamana Straddles Up +80%
- ECB Official: $1T Package Is Not Enough To Save Eu...
- Fed to Be Audited (Senate Vote: 96-0), Roubini Wor...
- Oil Up or Down, UCO Play for This Week
- Kitco, Barclays, and Societe General Forecast Gold...
- Gold Hits New Records, How to Trade It
- Rosenberg: Europe Shock and Awe Bailout Plan Means...
- European Bailout Is A Giant Ponzi Scheme And Giant...
- Roubini: Break Up the Banks; Prevent Them From Sho...
- Euro Flatly Rejected at 1.30, Needs a 10T Bailout
- Roubini: Europe's $1T Bailout Still Has Conditions...
- Moodys (MCO) Down 11% on SEC Notice; Straddles +76%
- OECD Spoils European Bailout Party: Economic Activ...
- Goldman Sachs Trading Perfection: 100% Success Now
- Why The Markets Crashed Thursday: Outright Deceit
- The 500B (or 900B) Euros Solution: A Tragicomedy, ...
- Best Oil ETFs For Oil Rebounding
- The Top Gold and Precious Metals ETFs For May 2010...
- Profit From Oil, the Euro, or Gold Going Up or Down
- AIG Dismisses Goldman Sachs as Corporate Advisor
- Citigroup Predicts A 20% Correction and a Very Vol...
- Latest Marc Faber Interview: Fed Has Encouraged a ...
- The 1,000 Point Plunge: Death Sentence For The Sto...
- Oil May Continue Plunging to $60
- The Silly Plunge Excuse: IWM Was Heavily Selling O...
- How to Survive A Market Crash And Make Money
- Bill Gross Joins the Europeans: Dismiss the Rating...
- The Rating Agencies Are Finally Becoming Targets: ...
- New Oil Straddles: UCO Rocks
- Stiglitz: Euro May Cease to Exist
- Profit From UNG Going Up or Down
- Latest Meredith Whitney: Banks Will Have No Earnin...
- Oil and Euro Crash: Straddles ROI +70%+
- Markets Tumble As Greeks Attempt to Storm Parliame...
- A Buy Sell Strategy Switching Between Oil and Natu...
- Former BoE Policy Maker: Greek Bailout May Collaps...
- Oil Tumbles: Straddles Profit
- The Euro Crash: Straddles Profitable, Again
- Properly Investing in Currency ETFs
- Proper Investment Diversification Through Correlat...
- France Needs to Issue $12B Euros Debt to Bail-Out ...
- Top 25 ETFs For May, to Buy and to Sell
-
▼
May
(89)
No comments:
Post a Comment