Gartman: Greek Crisis Will Destroy European Union

Friday, 07 May 2010 08:43 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The European debt crisis that has spread from Greece will ultimately tear apart the entire European Union, says hedge fund manager Dennis Gartman.

“I think the whole thing will go down to defeat, the whole thing will eventually unravel," says the author of The Gartman Letter.

The crisis has intensified, with riots erupting in Greece after the International Monetary Fund and EU agreed to provide a 110 billion euro ($140.36 billion) aid package.

Meanwhile, ratings agencies have downgraded Spain and Portugal’s government debt.

All the turmoil has sent the euro tumbling down to a 14-month low.

“The market has lost confidence in the bailout process, and that has led to concern over the euro,” Amelia Bourdeau, a currency strategist for UBS, told Bloomberg.

“It’s questioning the medium-term implications of the (aid) package. Can Greece meet the terms, and will the package be enough to stop contagion risk?”

The answer for Gartman is obviously no. He declined to specify a date for when he thinks the EU will collapse.

But he did tell CNBC, “it doesn't look good."

Investors should avoid U.S. stocks until the storm clears, Gartman says.

"It means confusion, it means a stronger dollar, it probably means weak commodity prices," he said. "I think people should be on the sidelines and out."

A correction of at least 15 percent for stocks would be normal, Gartman points out.

And, "There's always a chance we could get worse than that."

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> 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:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Cops Find Car Linked to Obama Death Threat

Saturday, 30 Aug 2014 16:17 PM

A car sought in connection with a suspected death threat against President Barack Obama has been located in Connecticut . . .

Rams Cut Sam, 1st Openly Gay Player Drafted

Saturday, 30 Aug 2014 16:47 PM

The St. Louis Rams have cut Michael Sam, the first openly gay player drafted by an NFL team.The 7th-round draft pick has . . .

Netanyahu: Islamic Extremist Threat All Around Israel

Saturday, 30 Aug 2014 15:45 PM

Israeli Prime Minister Benjamin Netanyahu said threats from the Islamic State and al-Qaida as well as Hezbollah and Iran . . .

Most Commented

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