Tags: Marc | Faber | Kick | Greece | Out | Euro Zone

Faber: Kick Greece Out of Euro Zone Right Now!

Friday, 07 May 2010 08:20 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Gloom, Boom & Doom report publisher Marc Faber says the time has come to boot euro members who repeatedly violate the region's budget rules, even though no mechanism for such a step yet exists.

"The best would be to kick out Greece and the countries that abuse the system," Faber says. "They didn't have the fiscal discipline that was essentially imposed by EU," he told Bloomberg.

Europe’s worsening debt crisis — which began six months ago with falsified Greek budget data — is intensifying pressure on officials to extend bailout help to other European countries as cuts in countries’ credit ratings continue to drive up borrowing costs.

As the turbulence exposes the weakness of having a currency area without a single fiscal authority, some economists believe that policy akers need to create a lending mechanism that will help other euro areas members through fiscal crises.

European leaders will gather Friday for another try at calming panicky markets skeptical of their pronouncements that the crisis won't spread to other countries, the Associated Press reported.

A summit of the 16 leaders from countries using the euro — initially called to sign off on a 110 billion euro ($140.36 billion) bailout package for Greece and draw lessons for the future — faces the challenge of urgent crisis management, after the euro dropped to its lowest level in 14 months and bond markets dumped Greek debt.

EU leaders have insisted for days that the Greek financial implosion was a unique combination of bad management, free spending and statistical cheating that doesn't apply to any other euro zone nation, such as troubled Spain or Portugal. They said the bailout should contain the problem by giving Greece three years of support and preventing a default when it has to pay 8.5 billion euros in bonds coming due May 19.

Yet, the markets have taken little heed. Stocks, Greek bonds and the euro plunged even after the head of the European Central Bank, Jean-Claude Trichet, underlined that "Portugal is not Greece. Spain is not Greece" on Thursday.

“What is missing in Europe is an authority that can back sovereigns through a crisis,” says James Nixon, co-chief European economist at Societe Generale SA, told Bloomberg.

“We desperately need this.”

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Pope Seeks to Bring Faith to 'Ends of the Earth'

Saturday, 19 Apr 2014 18:26 PM

Pope Francis baptized 10 people Saturday and urged them to bring their faith to the ends of the Earth as he presided o . . .

Conservatives Deride Effort to Rig Electoral College

Saturday, 19 Apr 2014 19:37 PM

Conservatives slammed the campaign to effectively end the Electoral College's role in presidential elections, saying tha . . .

Fox Executive Fired Over Flight 370 Charity Email

Saturday, 19 Apr 2014 18:22 PM

A veteran Fox executive who used her company email account to plan aid for loved ones of the missing Malaysian airplane' . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved