Tags: Zulauf | Depression | Death | Eurozone

Felix Zulauf: Depression to Ring in Death of Eurozone

Tuesday, 13 Dec 2011 09:01 AM

Periphery countries in the eurozone like Greece are entering a depression, which will bring about the death of the euro at least in its current form, says investment manager Felix Zulauf.

"I think the periphery goes into depression. When you look at a country like Greece, it’s now been in recession for three years. GDP is probably down 15 percent from the top. The stock market is down 90 percent, which is the equivalent of 1929 to 1932 in the U.S. This is depression-like," Zulauf tells King World News, as reported by Business Insider.

"I expect next year one country, probably three, will exit the euro. That will make 2012 very interesting because there are no rules on how to exit the euro."
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European leaders for two years now have been fighting to save the currency, and recently, almost all European Union members signed a treaty to better integrate fiscal policies, with Britain acting as the sole hold out.

eurogetty200v3.jpg
(Getty Images photo)
Market applause was short-lived, especially in wake of Moody's statement that the pact didn't change the agency's views that downgrades are still possible due to the urgency of the crisis.

While fiscal discipline deserves praise, policymakers need to firewall the crisis right now.

"We have a nice agreement: a fiscal compact, commitments to keep fiscal deficits down. But, actually, does any of this solve the euro crisis? No it doesn't," says Victoria Cadman, an economist at Investec in London, according to Reuters.

"We still sit here searching for the big bazooka solution."

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Periphery countries in the eurozone like Greece are entering a depression, which will bring about the death of the euro at least in its current form, says investment manager Felix Zulauf. I think the periphery goes into depression.When you look at a country like Greece,...
Zulauf,Depression,Death,Eurozone
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2011-01-13
Tuesday, 13 Dec 2011 09:01 AM
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