Thursday, June 23, 2011

EU Should Give Greece the Boot; Investors Should Buy Euro?

Not surprisingly, Greece is back in the news lately. I say not surprising because nothing has been done to solve the problem. Simply using bailouts to try and wallpaper over the fact that Greece can't pay its debt does nothing to solve the problem. In fact, it only serves to punish responsible countries, like Germany, and reward the irresponsible, like Greece.

More and more pundits are calling for the EU to simply give Greece the boot, take it off the Euro and let it deal with its mess. This seems the likely course of action, since retaining countries like Greece will only bring the Euro down and create resentment in those nations of the EU left to pay for Greece's recklessness.

Jon Najarian, the co-founder of OptionMonster.com, is one such pundit who says that if the EU would expel Greece and leave it to deal with the fallout of its socialist policies, the Euro would see a very real benefit. Doing so would also send a message to any other would be PIIGs, that they got themselves into their mess, they need to get themselves out.

Would the EU ever take this step? It's too soon to tell, but there don't appear to be many other options.

This should at least be food for thought for any would be Euro traders out there.

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