May 26, 2012
Global Recession if Greece quits?
"Chance of global recession 100%" says Marc Fabar, economist/financial author. Faber says catalyst would be a Greek exit from the EU. Interview at CNBC:
“I think the market would be relieved if finally Greece exited the euro. There would be some clarity. Although it wouldn’t be good for banks and insurance (stocks) in general I think markets are oversold and with an exit – markets would rally.”
It’s worth noting that Faber is talking hypothetically; he does not think Greece exits the EU in the near future.
“What I think will happen is that Germany will show more flexibility and issue more euro bonds.”