George Soros said at a panel discussion in Vienna today that “We are on the verge of an economic collapse which starts, let’s say, in Greece, but it could easily spread.”

The billionaire hedge fund manager whose huge bet on the collapse of the British pound earned him one billion dollars warned about the severity of the Euro crisis, saying, “The financial system remains extremely vulnerable.”

He also explained how the crisis will probably end, according to Bloomberg: it’s “probably inevitable” that a mechanism will have to be put in place to allow weaker euro-region economies to exit the Euro.

“I think most of us actually agree that [Europe’s crisis] is actually centered around the euro… It’s a kind of financial crisis that is really developing. It’s foreseen. Most people realize it. It’s still developing. The authorities are actually engaged in buying time. And yet time is working against them.”

Of course he’s talking about authorities’ efforts to prevent a Greek default by offering help contingent on a budget overhaul. Preventing a Greek default is important because people worry that it would set off much larger and more damaging defaults in Spain, Portugal, and Ireland.

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Original source at: Money Game |

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The Swiss National Bank has been intervening in the FX market to slow/stop the appreciation of the CHF against the Euro for the past six months. This week they threw in the towel and will let the Franc float higher. It cost them a bundle. 8bn marked to market to date, only hope is for Euro to gain, and all the problems of Europe to disappear ASAP, perhaps then their positions can be closed by off-loading Euros. Also, in an attempt to get out as soon as b/e, the previous break intervention levels, might prove to be strong resistance zones. Something to watch, let Euro make some correction to those tasty levels…

Original article at: SNB Loses 8b on Euro Intervention …

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