Wednesday, February 8, 2012

Faber Says 'Weak' Euro Nations Should Leave the Currency Union -BusinessWeek

Faber comments on the weaker Euro nations dragging down the stronger countries:

“It would be good if weak countries were kicked out or left the currency union,” Faber said in an interview in Zurich today. “It would be the better solution than denial.”
European leaders are struggling to contain the debt crisis, which forced Greece, Ireland and Portugal to seek external aid. German Chancellor Angela Merkel has made a deficit-control treaty the centerpiece of efforts to combat the turmoil, counting on stiffer fiscal rules to restore investor confidence in public finances across the 17-nation region.

“Last year, we have seen high volatility, large swings,” on equity and bond markets, he said. “I expect this volatility to remain or maybe even increase this year. Shares are more attractive than bonds overall.”
Faber said the ECB will “probably continue to print money in a direct or indirect manner,” and that the “worst part of the crisis is still ahead of us.”