If you haven’t seen this piece by George Soros I would highly recommend it. He lays out a step by step plan for stabilizing the EU while also establishing the foundation for the Euro’s inevitable evolution into a fiscal union. Soros says if this is not done quickly the global economy could quickly spiral into a second depression as the EMU unwinds in a disorderly fashion:
“Three bold steps are needed. First, the governments of the eurozone must agree in principle on a new treaty creating a common treasury for the eurozone. In the meantime, the major banks must be put under the direction of the European Central Bank in exchange for a temporary guarantee and permanent recapitalization. Third, the ECB would enable countries such as Italy and Spain temporarily to refinance their debt at a very low cost.”
I think Soros is one of the few experts who has really understood the core problems at hand in Europe from the very beginning. Now, I am obviously biased because his solutions mesh with mine almost perfectly, but I’d still be very interested in reader thoughts on the subject. You can find the entire Soros piece here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.