The European Union and its currency will survive the Greek debt crisis, which makes the euro a good bet, says investment guru Jim Rogers.
Whether European countries help Greece right its economy or if the country goes bankrupt, the euro will survive.
Plus there are just too many pessimists out there right now when it comes to the European currency.
“Either Greece is going to be papered over and they’ll give a blast to the euro, or they’re going to let Greece go bankrupt. In my view, this is what they should do because then people would say, 'Wow. They’re serious about sound economies in Europe,'” Rogers tells Wall Street Cheat Sheet.
“Either way, I think there’s probably a rally coming. There’s a huge short position in the euro and whenever there’s been a huge short position in anything, it’s sometimes profitable to go to the other side.”
European Union countries are bound to cap fiscal deficits to 3 percent of gross domestic product, but Greece has swelled to 12 percent, which has prompted speculative attacks against the euro in currency markets.
But big European powers are telling speculators to watch out: Greece will not falter, and neighboring countries will help Athens.
“Of course, the future of Greece is in question, but it's also that of Europe being played out,” says French President Nicolas Sarkozy, according to the Associated Press.
“Europeans have created a common currency — all the countries that share this currency must show solidarity.”
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