Germany Should Have Abandoned EU a Week Ago - Faber
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Germany is already running a week behind Marc Faber's recommended time frame for leaving the EU. The author of the Gloom, Boom, Doom report thinks they should have exited the Eurozone last week. Faber's comments came today during an interview with Betty Liu of Bloomberg television, and may in fact express concerns of many Germany citizens.
Last week the markets rallied after an EU summit showed that Germany's Angela Merkel, who has so far opposed deeper financial integration with debt riddled eurozone countries, signaled that Germany is willing to cooperate on financial integration in an effort to help end a deepening financial crisis in the region. As a result, markets rallied.
"When markets are grossly oversold, especially markets of Portugal, Spain, Italy, France, then any news that is not disastrous news propels stocks higher,” noted Faber. "But it is another cosmetic fix, a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone. And what it does, basically, it forces Germans to continue to finance people in Spain and Portugal and Greece that are living beyond their means."
"If I were running Germany, I would have abandoned the eurozone last week," said the economist. "In the case of Greece, one should have kicked out Greece three years ago. It would have been much cheaper."
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Last week the markets rallied after an EU summit showed that Germany's Angela Merkel, who has so far opposed deeper financial integration with debt riddled eurozone countries, signaled that Germany is willing to cooperate on financial integration in an effort to help end a deepening financial crisis in the region. As a result, markets rallied.
"When markets are grossly oversold, especially markets of Portugal, Spain, Italy, France, then any news that is not disastrous news propels stocks higher,” noted Faber. "But it is another cosmetic fix, a quick fix that does not solve the long-term fundamental problem of over investment in the euro zone. And what it does, basically, it forces Germans to continue to finance people in Spain and Portugal and Greece that are living beyond their means."
"If I were running Germany, I would have abandoned the eurozone last week," said the economist. "In the case of Greece, one should have kicked out Greece three years ago. It would have been much cheaper."
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