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Greece Is Going Down The Drain, 50-50 Chance It Will Leave Euro – George Soros

By Kitco News
Tuesday March 24, 2015 1:57 PM

(Kitco News) - With Greece bailout negotiations back on the table, one famed billionaire says the country is headed in a downward spiral.

“Greece is a long-festering problem that was mishandled from the beginning by all parties,” said George Soros in a Bloomberg Television interview Tuesday.

George Soros

According to Soros, this is a ‘lose-lose game’ for both Greece and Europe, and the best case scenario is that they continue to ‘muddle through’ this uncertainty.

“Greece’s performance has greatly deteriorated, so doing what they’re doing they’re hurting themselves,” he said.

“[If] Europe also pushes Greece out of the euro, [it] would hurt itself and create a bigger risk of financial upheaval,” he added.

Greek Prime Minister Alexis Tsipras met with German Chancellor Angela Merkel in Berlin this week to discuss the country’s need for aid from creditors to meet its looming debt repayments.

Since taking office in January, Tsipras has been in negotiations with its creditors - the European Central Bank, the International Monetary Fund and the European Commission – in order to amend the austerity program set out in the bailout agreement. However, as the issue sees no resolution in sight, many are concerned that Greece may default on its debt obligations and be forced out of the euro.

“Right now, we’re at the cusp and I think I can see both possibilities,” Soros said, adding that he sees a 50-50 probability that this situation can go both ways.

Soros said regulators can continue to kick the can down the road with this issue and the best case scenario would be for them to just ‘muddle through’ it.

“[Y]ou don’t need to write down the debt now, you can just keep on pushing it back indefinitely,” he said.

By Sarah Benali of Kitco News sbenali@kitco.com
Follow Sarah Benali @Sdbenali

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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