Wednesday, July 8, 2015
Marc Faber: “I Think The Likelihood Of Greek Contagion Is Very High”
Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the contagion risk posed by the Greek debt crisis and the prospects for a resolution. Faber, speaking with Olivia Sterns and Matt Miller on
MARC FABER.: Well my take is that they will have to compromise. Greece has basically rejected the austerity proposal by the EU. And what we will see is essentially the ECB will either have to attempt to continue to pump money into the Greek banking system, or they will have to stop. And everybody knows in the world that Greece cannot pay its debt at the current size. So what will happen, in my view, is either Greece will leave the EU and will suffer very badly for a few months, maybe even longer. There will be a cash shortage. Or the EU, and the ECB and the IMF will have to cut a significant haircut. And Tsipras proposed a haircut of something like 30 percent. I don't think that's enough. I think they will need a haircut of at least 50 percent
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Posted by Nicole Bourbaki