Banking chief says euro collapse is inevitable!
LONDON, England - February 13, 2010 - The European single currency is facing an “inevitable break-up”, according to a leading French bank.
Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide “sticking plasters” to cover the deep-seated flaws in the euro zone bloc.
The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a “double-dip” Depression in the embattled zone.
Claims that the euro could be headed for total collapse are particularly striking when they come from one of the oldest and largest banks in France - a core founder and member.
In a note to investors, Société Générale strategist Albert Edwards said, “My own view is that there is little help that can be offered by the other euro zone nations other than temporary, confidence-giving ‘sticking plasters’ before the ultimate denouement: the break-up of the euro zone.”
He added, “Any help given to Greece merely delays the inevitable break-up of the euro zone.”
The alarming claim came a day after European Union leaders promised “determined and coordinated” action to shore up Greece's tattered public finances, but disappointed traders by failing to provide specifics.
Further details are expected early next week, but markets were in high anxiety yesterday amid fears political divisions among rich euro zone members could derail any rescue.
The euro slid almost 1%.
Strategists at Paris-based Société Générale said that any bailout of the stricken Greek economy would only provide “sticking plasters” to cover the deep-seated flaws in the euro zone bloc.
The stark warning came as the euro slipped further on the currency markets and dire growth figures raised the prospect of a “double-dip” Depression in the embattled zone.
Claims that the euro could be headed for total collapse are particularly striking when they come from one of the oldest and largest banks in France - a core founder and member.
In a note to investors, Société Générale strategist Albert Edwards said, “My own view is that there is little help that can be offered by the other euro zone nations other than temporary, confidence-giving ‘sticking plasters’ before the ultimate denouement: the break-up of the euro zone.”
He added, “Any help given to Greece merely delays the inevitable break-up of the euro zone.”
The alarming claim came a day after European Union leaders promised “determined and coordinated” action to shore up Greece's tattered public finances, but disappointed traders by failing to provide specifics.
Further details are expected early next week, but markets were in high anxiety yesterday amid fears political divisions among rich euro zone members could derail any rescue.
The euro slid almost 1%.
