The euro is a doomed currency

The euro is a doomed currency

 

Lars Seier Christensen, co-founder and co-CEO of Saxo Bank, believes the euro is a doomed currency and in an interview with TradingFloor.com he explains why the recent rally in the euro is little more than an illusion.

 

Lars believes the euro was based on unsound foundations from the start and says that unless major changes are made, the currency union will continue to run into problems. “Many people knew about it but were hoping that as the project continued to move forward, some of the necessary foundations would be put in place such as joint debt issuing, bigger transfers and fiscal union. It’s quite clear that the population of Europe is not ready for it; they don’t want it and now what is left is a euro without a foundation,” he says.

 

As a result, Lars warns investors should be very wary of being long the euro and cautious when investing in euro-based assets. “Bond markets are very overvalued in some Eurozone countries and obviously very speculative and dangerous in other areas,” says Lars.

 

When asked about the German election in September, Lars says he expects Angela Merkel to comfortably win a third term, but warns it could be the last time the German electorate support the status quo. “This election is the last one that will not be a game changer because the pain is not being felt enough in Germany yet to lead to a massive public reaction. Merkel will get through with her mandate reasonably in place. But that’s the last time you are really going to get away with keeping the Germans quiet. There is clearly a change in sentiment. I just don’t think it’s strong enough to mean something at this election.”

 

Lars Seier Christensen will be speaking about the Eurozone crisis at the #FXDebates event in London on May 7. To secure a place at this exclusive event, visit fxdebates.co.uk.

 

http://www.tradingfloor.com/posts/euro-doomed-currency-1732922846

Thanks for sharing this

I think the Euro needs to be restructured, maybe even split in two or more parts in order to align interests better. I do agree that the Euro in its current form has no chance to survive and all we do is throw good money after bad. It is time for Germany to realize that.

I think the Euro needs to be restructured, maybe even split in two or more parts in order to align interests better. I do agree that the Euro in its current form has no chance to survive and all we do is throw good money after bad. It is time for Germany to realize that.

 

OMG.... gaban, you can't split the EURO into two or more parts. It's statements like this that shows us that you are clueless about world currency.

 

Hint: The Euro will survive and can be corrected, the question is when.

I dont really think so, to be honest. At least not in the next years :D

Well, for traders if the value of the euro drastically fluctuates in light of these events... a lot of people stand to make a good amount of money.

Has anyone tried the Saxo Trader recently?