The German public still thinks that it has a choice about whether to support the euro or to abandon it. That is a mistake. The euro exists and the assets and liabilities of the financial system are so intermingled on the basis of a common currency that a breakdown of the euro would cause a meltdown beyond the capacity of the authorities to contain. The longer it takes for the German public to realize this, the heavier the price they and the rest of the world will have to pay.
via Does the Euro Have a Future? by George Soros | The New York Review of Books.
By George your right.!
But the Euro needs to be backed by Gold, otherwise its just custard.
I think the majority of profit throughout Swiss Frances and Gold. Even ppl can make a good profit $$ in A$ & Canadian dollar which are related to Gold in the same basket…I am still bearish for the global economy. However, the good cycle be still maintaining some of countries, such as, China & India. The rest of countries be in my basket are: Denmark; Switzerland, Australia, Middle East & South Africa (not the North Africa) …
In terms of sovereign debt crisis in Greece, some of comments they will say the only solution is to bring back the Drachma and quit from Euro. However, in my opinion, they won’t allow that to happen as well Germany and France, bcoz then Italy & Spain even all future pigs will follow is sure. On the other hand, those political leaders they won’t be confronted by facing the mistakes that they had have made from the beginning Euro unit was commenced!! So, the last resort I think a Eurobond could be the only solution at this stage.
My long term view is we should have no more than 20% of our wealth exposed to the stocks market I would prefer be a conservative investor then just make that a maximum of 5-10% of my wealth in Debt-Stocks market. The fact is, as a fundamental investor (that means we look at balance sheets, P/E, income/profit statement etc etc of a company) it’s hard to ignore one thing and dream of or hope for they are “doing alrite” or “doing well” However, I won’t deny by putting some $$ invest a blue chip stocks are good buy now as well even some of them are already undervalued which is equivalent Ord Index below 4000 !!!!! **as per economic outlook in USA, the DOW be sitting between 8700-9800 is more reasonable level.
With quantitative easing inevitable, investing in real assets makes sense. But buying blue-chip stocks at the start of a bear market may not be good timing. Regards, Colin