Jim Rickards adamant that a deal will be struck - "both sides will blink" - and Greece stays with the Euro. Says exit would be "catastrophic" as markets would force a collapse due to onflowing failure of confidence that other shaky member nations won't also exit. Agrees with interviewer that Lehmans gives an analogy but implies that scale would be greater. Greece will also compromise, for one thing because a Drachma return would be hyper inflationary?
A side point I don't get is where he says that buying Greek 10 year in 2010 @ 5% was best time to buy, Soros did, yet Greek Govt 10 year is now around a 10% yield. After 2010 when it was around 5% yield it blew out to over 40%. Conversation from experts about bonds and yields usually ends up perplexing me.
Anyway his main point and that of the seniour Forex strategist seems to be that the current high yield in 'junk' Greek 10 year Govt Bonds is a Buy opportunity - that is, the price will go up when the current Greek crisis inevitably resolves through compromise but a buyer of today keeps the high yield.
Greek Euro Exit Would Be `Catastrophic,' Rickards Says
A side point I don't get is where he says that buying Greek 10 year in 2010 @ 5% was best time to buy, Soros did, yet Greek Govt 10 year is now around a 10% yield. After 2010 when it was around 5% yield it blew out to over 40%. Conversation from experts about bonds and yields usually ends up perplexing me.
Anyway his main point and that of the seniour Forex strategist seems to be that the current high yield in 'junk' Greek 10 year Govt Bonds is a Buy opportunity - that is, the price will go up when the current Greek crisis inevitably resolves through compromise but a buyer of today keeps the high yield.
Greek Euro Exit Would Be `Catastrophic,' Rickards Says
