VXSpotlight: Greece Likely to Exit Euro This Year, FX Concept (Bloomberg.com)

Hey everyone,
Hope you are all having a great week.


Today on the Velomaxx Spotlight (VXS), we would like to highlight a article stating the possibility of Greece to leave the Euro sometime this year, even as early as next month! According to John Taylor of hedge fund FX Concepts LLC., the reason for this possible exiting is the Greek government running out of cash and other European institutions failing to support it (2012).


He even states in an interview on Bloomberg Television's "Inside Track" that the exiting could occur this summer (June - August). “The Europeans aren’t going to give them the money, the International Monetary Fund’s not going to give them an OK. They will be out of money in June,” he says (2012). 

Source: Boston.com/LOUISA GOULIAMAKI/AFP

According to the article by Detrixhe & Schatzker, the nation's political leaders are meeting again for a second day to form a government, sprouting speculations that ANOTHER election may occur in mid-June if a governing coalition is not properly formed and organized (2012).


 The Euro extended its longest run of declines against the Dollar since September 2008 as German Chancellor Angela Merkel rejected government stimulus as the way to spur economic growth, setting up a clash with French president-elect Francois Hollande (Detrixhe & Schatzker, 2012).

The euro declined 0.4% to $1.30 at 9:01 a.m. in New York after sliding to $1.2955 yesterday, the weakest level since Jan. 25 (Detrixhe & Schatzker, 2012).

So what do you think of this move? Will that benefit everyone else if Greece pulls out of the Euro? More importantly, how will that affect the people of Greece? 

Have a great day everybody! 

Go here to view the interview & the article: Detrixhe, J & Schatzker, E 2012, Bloomberg.com
Image Source: Articles, Boston.com March 07 2012