Euro Plan ‘B’ Currency Would Save Greece, Hedge Manager Says

[Joanne98]

Source: Bloomberg

April 29 (Bloomberg) -- An alternative to the euro is needed to let Greece and other European nations devalue their way to financial health, according to Sudeep Singh, a hedge fund manager who has traded in emerging markets for 17 years.

European nations are constrained by the euro because they can’t reduce the costs of their goods and services with a cheaper currency, part of the solution in at least five major emerging-market crises that Singh said he’s traded through. The credit ratings of Spain and Portugal were cut this week amid concern Greece’s difficulty to pay its debt will spill over to Spanish and Portuguese markets.

Europe should split the euro into two classes to provide an alternative to struggling nations, said Singh, 41. He proposes calling the new currency the “sestertii” after the Roman Empire coin once used across southern Europe.

“You have to view this crisis through an emerging-market prism, where we’ve seen this movie before,” said Singh, a veteran of hedge fund firms Caxton Associates LLC and SAC Capital Advisors LP, who this month started a new hedge fund firm in London called Redux Research Ltd. “In every other emerging-market crisis there’s been a currency devaluation, a debt restructuring and tighter new fiscal policy. Greece and the others can’t become competitive without a cheaper currency.”



Read more: http://www.businessweek.com/news/2010-04-29/euro-plan-b-currency-would-save-greece-hedge-manager-says.html

[Stella_Artois]

1. Yeah whatever...

He's just offering friendly advice. He's not standing to make a fortune if this does happen. Sure.

Parasites like him are not blameless in this long running financial mess.

[AngryAmish]

2. George Soros is a parasite?

[PSPS]

6. Frankly, yes.

Anyone who deposits billions of dollars a year into their personal bank account could accurately be called a parasite.

[nyy1998]

10. So anyone who makes a lot of money is automatically a parasite?

[bemildred]

11. I think it's the billions per year in a personal bank account that makes you a parasite.

Not just "a lot of money", "a lot of money" could be $150K per year to some people, and that would be chump change to others.

[Vilis Veritas]

12. No. A parasite does not care if the host dies or suffers.

Parasitic financial behavior is that practiced by the VERY wealthy in order to bring about shifts in economic patterns on a global basis. They are those who are GENERATIONALLY rich. The very large banks that are preying on the current markets in order to bring about huge shifts in economic patterns on a global basis are parasites and they are well known for their vast meddling in the world's economies.

This IS NOT about the average businessman who makes a very decent living and makes money and takes care of his workers. If however, you make a lot of money at the expense of a moral and ethical bond towards your fellow man who is your host and patron, then yes you are a parasite.

[Kolesar]

19. well said ... eom

[dotymed]

3. Instead.

I think we should outlaw hedge funds or at least greatly limit their profits. Isn't this the real reason Greece is in such a terrible economic situation? I am not a "literalist" Christian. I believe in a "higher power", as they call it in 12 step programs..anyway. I think that the original intent of the holy books was to pass along wisdom. (before they were so corrupted, King James..et al..) But when it says "throw the money changers out of the temple." I think those are words of wisdom. For-huge-profit making anything, are usurious to mankind. Now the SCOTUS is allowing these elite entities to own our government...

[Vilis Veritas]

13. Right.

Wasn't this in place back in the 70 and early 80's? I seem to remember that the laws were in place since Roosevelt and removed during the 1982 financial crisis.

[naaman fletcher]

16. nope..

"I think we should outlaw hedge funds or at least greatly limit their profits. Isn't this the real reason Greece is in such a terrible economic situation?"

Greece's financial situation is caused, like almost all financial problems, by borrowing lots more money than they can afford to repay. The hedge funds simply saw this coming and bet on the coming problem. You could argue that they helped speed up the problem by shorting greek debt, but the alternative would have been simply for the problem to be delayed in which case it would have gotten worse.

[dotymed]

18. lol Who lent them the money?

The same banksters who wrapped them them all together, sold them as safe, and promised the hedgefunds great returns, while placing bets against the "toxic assets" they sold. Yes, the hedgefunds were playing both sides also. Buying toxic junk for one fund, and betting against it. "Hedgefunds" make money on both ends. The firms are not taking risks but their "investors" are. Fi
Finish the rethug "talking point", the banks were forced to make bad loans....B.S....It's all gambling with the firms being the house.

[Thor_MN]

4. Oh god!!! They are not planning on airdropping Bush on Greece!!?!!?

Plan B can destroy a country in as little as 8 years!!!

[kirby]

15. Actually, that is plan "W". n/t

[salib]

5. Disaster Capitalism in Action Once Again

Create a mess and take advantage of desperate people. Amazing what people will "accept" if expectations are low enough.

Or, just deregulate/disempower people enough so that other can screw things up, and take advantage then. Plausible deniability, ya know.

[PSPS]

7. "tighter new fiscal policy"

"In every other emerging-market crisis there’s been a currency devaluation, a debt restructuring and tighter new fiscal policy."

The "tighter new fiscal policy" being referred to is the old IMF game. Eviscerate all social programs, eliminate taxes on the rich. Otherwise, those 600 foot "yachts" in the exclusive moorage may be forced to sail to a "friendlier" country!

[dixiegrrrrl]

8. Remember they can plan that for OUR currency too.

IN plain English, he is talking about currency devaluation, which is often used when a countries'
debt becomes impossibly excessive.
We are fast heading for the same debt problem.

[JCMach1]

9. This crisis is not a mistake... banks, institutions, and corporations are sitting on piles

or dollars right now...

Think of the instant profits to be made by NOT financing profligate and marginal European economies and sitting on your U.S. $$$.

Follow the money flow and ask yourself who is profiting here.

[melm00se]

14. Greece is a tough situation

who, in their right mind, would want to lend money to a country who, frankly, lied about their financial situation once already.

[JCMach1]

17. Worse than that... the Conservative gov. bailed out the banks, a left goverment gets elected

and behold... the books were cooked and now the IMF wants to cut social services to finance a bailout given to the banks...

Greece is soooo screwn...

Because now, the bankers want a pound of flesh on the back of the Euro.