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Greece will default by the end of this year, according to Marshall Auerback. Auerback is a portfolio strategist and hedge fund manager from Colorado-based Madison Street Partners, which has $261 million AUM.”I think it will default by December,” said Auerback during a conference in Dublin.
“That will give them enough time to have a plan in place to recapitalize the exposed banks and minimize the contagion.”
While that might end up being Greece’s fate, Auerback also said European authorities can still save Ireland and the other peripheral countries, but the current approach to resolving the crisis isn’t working, the report said.
Here’s what he thinks will work [via Independent].
Instead, Mr Auerback suggested that the ECB should immediately distribute €1trn of newly created, debt-free money to all eurozone governments on a per capita basis with the condition that this money was only used to pay down government debt. This should then be done on an annual basis until the crisis was resolved.
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