Soros Pushes EU to Start Joint Debt Fund or Risk Summit Fiasco – Bloomberg 06-24-12

Salient to Investors:

George Soros said:

  • A failure to produce drastic measures could spell the demise of the Euro.
  • Europe should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts – funding to come from the sale of European Treasuries, which would have low yields because they would be backed by each euro member.
  • Merkel is worsening Europe’s crisis because countries need growth, not austerity, to pay down their debt – she has been leading Europe in the wrong direction.
  • Greece cannot meet the conditions that have been set, and Germany is absolutely determined not to modify them, so expect Greece to be forced out of the euro.
  • Neither Spain nor Italy can print money, making it likelier that financial markets can push one of them out of the bloc. Spain is likely to need a full bailout unless leaders announce drastic measures at the meeting.
  • Stock and bond markets will react negatively if Europe fails to announce a plan this week to ease pressure on Spain and Italy.

Read the full article at http://www.bloomberg.com/news/2012-06-24/soros-pushes-eu-to-start-joint-debt-fund-or-risk-summit-fiasco.html