‘Greece WILL Leave The Eurozone on January 1, 2013′: Citigroup Boss Predicts Exit Date And Warns of ‘Massive Wave of Contagion Across Europe’!
- The 1 Jan 2013 date is optimistic. It can happen as early as end June 2012! Never be a sheeple, the last to know/understand what is going on but the first to suffer the consequences. Prepare for the coming meltdown by accumulating physical gold/silver immediately! (emphasis mine)
‘Greece WILL leave the eurozone on January 1, 2013′: Citigroup boss predicts exit date and warns of ‘massive wave of contagion across Europe’!
by Daily Mail Reporter, http://www.dailymail.co.uk/
- Currency trading bank says Greece’s new currency would fall by 60%
– European markets relatively stable today despite the dire warning
– FTSE-100 up 1.18%; CAC 40 up by 0.85%; DAX up 0.39%
– Had plunged yesterday after Bundesbank said Grexit would be better
– France and Germany disagree over Eurobonds at six-hour crisis summit
– Officials say growth-led French gaining ground on austere-Germans
– Nick Clegg to take swipe at those urging for Greece to quit the euro
The euro crashed to a 22-month low yesterday as the European economy took another dramatic turn for the worse. Figures showed the biggest slump in private sector business across Europe this month for nearly three years.
The dire news sent the euro tumbling against the dollar to $1.25 – its lowest level since July 2010. Against the pound it was worth little more than 80p.
The latest gloom came against a backdrop of a continuing sense of crisis over Greece as Berlin and Paris remained at loggerheads on what to do, despite the emergency Brussels summit that ended in the early hours of yesterday morning. This comes as a senior economist at the world’s second-largest currency trading bank claims Greece will leave the single currency eurozone on January 1, 2013.
Citigroup’s Michael Saunders said Greece’s new currency would fall in value immediately by 60 per cent – and unleash a massive, yet manageable, wave of contagion across Europe. In a note to clients, he said the likelihood of Greece leaving the euro in the next 12 to 24 months was now between 50 to 75 per cent – and assumed there would be a ‘Grexit’ at the start of next year.
The firm based its case on the belief that Greece would fail to form a government capable of implementing austerity measures after its next set of elections on June 17. This would ‘accentuate’ the stalemate between the nation and its creditors.
Mr Saunders said: ‘We assume Grexit occurs on January 1, 2013, with Greece staying in the EU and receiving external loan support [to mitigate risks of social unrest and collapse of civil society].
‘We expect that Grexit will be followed by a series of policy responses aiming to prevent a domino-style collapse of the banking system and escalating economic disruption.’
The claim came as stock markets across Europe remained stable today despite increased fears of Greece’s chaotic exit - and a growing rift between France and Germany on plans to save the single currency. Markets plunged yesterday after the mighty German Bundesbank warned it would be better to let Greece leave the euro than give its crippled economy any more cash.
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