Europe faces almost inevitable recession next year and years of stagnation as policymakers' response to the euro zone crisis causes a downward spiral, billionaire U.S. investor George Soros said on Tuesday.
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Source: World Economic Forum George Soros |
Flaws built into the euro from the start had become acute, Soros told a seminar, warning that the euro crisis could have the potential to destroy the 27-nation European Union.
The euro's lack of a correction mechanism or of a provision for countries to leave it could be a fatal weakness, he said.
Germany had imposed its criteria on how a 750 billion euro ($1 trillion) euro zone rescue mechanism should be used and was imposing its own standards -- a trade surplus and a high savings rate -- on the rest of Europe, Soros said.
"But you can't be a creditor country, a surplus country, without somebody being in deficit," he said. Read more
Now, market is torned between reacting to technical or news. Currently market seems to react towards technical rather than news.
ReplyDeleteWhen this will turn, it is anyone's guess. So with market leaders like Soro, will the market listen to them or will the market continue to ignore them and march on? Hmmm.... foods for thought.