Barton Biggs on saving the euro

It's clear that the Europeans didn't put together a big enough package to solve the problem and now, since they didn't do that, they're going to have to do a much bigger package and maybe even do fiscalization [sic]  of Europe to save the euro.

~Barton Biggs, founder, Traxis Partners, Bloomberg TV, August 4, 2011

Larry Summers on how to save the eurozone

US policymakers were applauded for about 12 hours for their willingness to let Lehman go bankrupt. The adverse consequences of the shattering effect that had on confidence are still being felt now. The European Central Bank is right in its concern that punishing creditors for the sake of teaching lessons or building political support is reckless in a system that depends on confidence.

There must be a clear commitment that, whatever else happens, no big financial institution in any country will be allowed to fail. The most serious financial breakdowns – in Indonesia in 1997, Russia in 1998, and the US in 2008 – came when authorities allowed doubt over the basic functioning of the financial system. This responsibility should rest with the ECB, with the requisite political support.

~Larry Summers, former US Treasury Secretary and former Director of the National Economic Council, "How to Save the Eurozone", Financial Times, July 18, 2011

Alan Greenspan on the return of the Greek drachma

A greek default is inevitable. If there is not fiscal consolidation, I cannot see any credible scenario where the Greek drachma does not come back.

~Alan Greenspan, former chairman, Federal Reserve, CNBC interview, June 30, 2011

Alan Greenspan on the inevitability of a Greek default

There's only two possible givens: there's a Greek default or there is a fiscal consolidation of the 17 countries of the Euro Zone.

I find that unlikely except for the fact that Germany is so key to that decision. Germany's caught up in a very critical political dilemma. If they were to stop and stop supporting Greece and Greece went under, what would very likely happen, we'd get some dismantling of the euro. What the Germans are resting on is a very strong export market, the result of the fact that the euro, relative to euro, relative to the eollar, is lower.

If, however, Germany goes back to the Deutschmark, which almost surely would be worth 20% more than the euro, they would have a huge capital gain. Remember, their liabilities would be much lower, but the very high Deutschmark would mean their exports would be under severe contraction. They have this short term problem of "how do we keep exports going, employment good?" Remember, they're doing very well, a very large part of that is they are supporting the transfer of a very large amounts of money.

That keeps the euro in place. It also keeps exports, as a critical variable.

~Alan Greenspan, former chairman, Federal Reserve, CNBC interview, June 30, 2011

EU official on the need to lie to manage market confidence

When it becomes serious, you have to lie.

~Jean-Claude Junker, prime minister of Luxembourg, "Market jitters bring difficult choice between truth and lies for politicians, spokespeople," AP, May 4, 2011

John Malone on the monetary race to the bottom

I think we're enjoying right now the fact that it's a race to the bottom with Europe. The concern about the Mediterranean countries, I think perhaps is overdone. But it led to a flow of cash into the U.S. and therefore strengthening the dollar.

And keep in mind you have all these corporations that are cash rich now because they fear for the worst. So they've built up cash hoards. But where do they put the money? They put it in money-market funds. What does the money market invest in? Short-term government securities. That's how we're financing this federal deficit.

~John Malone, chairman, Liberty Media, WSJ, July 21st, 2010

Jim Cramer on the success of the IMF-sponsored eurozone bailout

People have to realize the IMF is going to be successful. It's going to save us from the total collapse of all these sovereign bonds. Italy just had a terrific bond auction this morning. Greek and Spanish bonds are trading like they're almost investment-grade. That means the IMF's intervention is working, that's what you look at, not the dollar versus the euro. The euro is going to go down because the IMF is throttling back purchasing power.

~Jim Cramer, "Curb Your Enthusiasm?", Mad Money, May 13th, 2010

Nicholas Sarkozy is serious about defending the euro

When the markets re-open Monday, we will have in place a mechanism to defend the euro. If you don’t think that’s significant, you haven’t been to many EU summits.

~Nicholas Sarkozy, president of France, Bloomberg, "EU to Set Up Fund to Prevent Spread of Greek Crisis", May 8, 2010

Peter Schiff on investing in Europe and in the euro

Europe certainly has its share of problems, but, unlike the United States, at least it lives within its diminished means. For all its socialism, at least the European Union enjoys a trade surplus and its people still manage to save. As a result the euro will likely be a principal beneficiary of the dollar's demise. That could give Europe a huge boost, helping to contain interest rates and consumer prices on the continent. As a result, the euro zone is definitely an area where we want to invest. Of course, we also want to invest money outside the euro zone, such as in Switzerland, the UK, and Scandinavia, which will also benefit from a strong Europe.

In the long run, the euro as a fiat currency may very well fail like the U.S. dollar. But being the largest nondollar currency issued by a major creditor, it appears certain to thrive in the short term.

~ Peter Schiff, Crash Proof, pp. 179-180

Shopper from Ireland on the strong euro

Everything is half price for us.

~ Ashlee Clifford, 26, of Northern Ireland, shopping at a Circuit City Store in Manhattan, "Shoppers Hit Stores For Early-Bird Deals, But It's Just a Start," Investor's Business Daily, November 26, 2007

(Shoppers from overseas reveled as the dollar, at record lows vs. the euro, made discounts even deeper.)

Patricia Bundchen: Supermodel sister prefers to be paid in euros

Contracts starting now are more attractive in euros because we don't know what will happen to the dollar.

Patricia Bundchen, twin sister and manager of supermodel Gisele Bundchen, "Supermodel Bundchen Joins Hedge Funds Dumping Dollars," Bloomberg.com, November 5, 2007