Thursday, April 29, 2010

Axel Merk On Greece: Political Resolve Needed On The Greece Crisis

Last night while I was scanning the TV, I came across and watched Bloomberg's Mark Crumpton's interview of Axel Merk President of Merk Mutual funds, whose insights are relevant to the ongoing concerns over Greece and the PIIGs

I scoured the internet and found the video (see below)...




Some notes:


-Spain is not a short term debt problem but very different structural issues (economic problem)


-This is not a monetary question, this is a political question. Is there political will to resolve Greece’s problem?


-would require policy measures that have teeth (to implement against Greece's profligacy)


-sovereign debt is a global issue


-there will be more sovereign downgrades outside the Eurozone.


-Collateral rules will be relaxed


-Any bailout should include Greek Banks.


-We like the Euro, others are fully priced.

-Euro is priced at an "end of the world scenario"

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