Marc Faber on Europe's Financial Theatrics
If he was running Germany, he would have quit the
eurozone last week
renowned publisher of the Gloom, Boom and Doom Report, believes
that all the financial machinations in Europe are a cosmetic fix
that won't lead to any long-term resolution of the real problem.
"If you put one or 100 sick banks in a union, it does not change
the fact that they're sick. In my view the markets are rallying
because they were grossly oversold. When markets are grossly oversold,
especially markets of Portugal, Spain, Italy, France, then any news
that is not disastrous news propels stocks higher. Their cosmetic
fix basically forces Germans to continue to finance people in Spain
and Portugal and Greece that are living beyond their means."
were the Germans, if I were running Germany, I would have abandoned
the eurozone last week...It is a costly decision, but losses are
there and somewhere, somehow, the losses have to be taken. The first
loss is the banks. In the case of Greece, one should have kicked
out Greece three years ago. It would have been much cheaper."
Marc Faber [send him
mail] lives in Chiangmai, Thailand and is the author of Tomorrow's
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