This could be interesting! - BBC News - Greece: Greenspan predicts exit from euro inevitable
Yeah, read that report, it’s getting a lot of attention.
He could well be right, especially re the Grexit, but as usual for Mr Greenspan he takes it the step further and predicts the demise of EZ and the Euro currency - yet again.
He has a reputation for such predictions, will the market take this latest one on board?
The last prediction was back in 2011:
Greenspan: Why the Euro Zone Is Doomed to Fail
One other thing about predictions, regardless from where they come, the market ignores them.
Mr Greenspan made a similar prediction a couple of months before the CNBC interview, also on the impending demise of the EZ, he coupled that prediction with the then uptrend in Gold.
He was adamant that gold was not in a bubble rise, he reasoned that there was an increased demand for Gold due to the failure of paper currency, on such comments the trade would be a continuation of the Gold price rise.
Gold is not in a bubble. “The major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.”
He made that particular comment near the end of August 2011. At the beginning of Sept 2011 Gold made it’s high and has continued to fall since.
That’s the thing about bias - it blinds a person.
I think Greece may leave the Euro but when is the question. I agree, the market will continue to trade as it is now and will only make any real movement the day that it is annouced that they have left the euro.