Feliz Zulauf was interview by King World News over the weekend and offered some excellent macro insights on the situation in Europe. The Swiss macro money manager, unfortunately, has been right about the Euro’s developments over the last few years and has a very dire outlook. He says the periphery is entering a periphery that will eventually lead to several nations leaving the currency union:
“I think the periphery goes into depression. When you look at a country like Greece, it’s now been in recession for three years. GDP is probably down 15% from the top. The stock market is down 90%, which is the equivalent of 1929 to 1932 in the US. This is depression-like.
…Then I expect next year one country, probably three, will exit the euro. That will make 2012 very interesting because there are no rules on how to exit the euro. A country exiting the euro means the next day, when they exit, their banking system is bust. That means the banking system has to be immediately nationalized in a new currency.
They introduce a new currency, they nationalize the banking system, and then, of course, the government is also bust. Then the government will default. That’s what you have to expect next year. I think Greece will do so and Portugal and Ireland are candidates also.”
Listen to the full interview here.
Source: King World News
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