While Greece sees a European aid package as its salvation, investment legend Jim Rogers says the country’s neighbors would be better keeping their hands off.
“If Greece goes bankrupt, it will clean up the system,” he says.
“The euro will go down for a while, but then the euro will be a very strong currency."
Official figures have been revised upward to show that the Greek budget deficit totaled a whopping 13.6 percent of GDP last year.
Greece shouldn’t be rewarded for its fiscal carelessness, Rogers told CNBC.
"The way to solve this debt problem is not with more debt. The idea that you would solve a problem with too much debt and too much consumption with more debt and more consumption, that defies comprehension."
Rogers also blasted President Barack Obama’s plan for more financial regulation as “ludicrous.”
It was problems in the regulated industries of mortgages, banking and insurance that triggered the financial crisis, Rogers notes.
"If it was regulated industries which caused the problems, we don't need more regulations, we need competent regulators," he said.
The biggest risk now is sovereign debt, not the financial industry, Rogers maintains.
He’s not the only one skeptical about aid to Greece.
“We are not buying Greek debt while so many problems remain unsolved,” Ralf Ahrens, who holds Greek bonds as head of fixed-income at Frankfurt Trust, told Bloomberg.
“Asking for the (aid) package will not calm down the market.”
© 2017 Newsmax Finance. All rights reserved.