The Euro zone economy may face years of recession

Jim Rogers : The best thing they can do is to let the Greeks go bankrupt, let the banks collapse and shareholders lose, and then restructure the whole thing. The euro area should do the same thing when it dealt with the three Nordic banking crisis in early 1990s. Take quick and decisive measures. The Government took over insolvent financial institutions, restructured the banks through disposing non-performing assets, and emerged from the crisis quickly. Twenty years ago, the Japanese government’s response to the crisis is a lesson to us. Letting those banks become “zombie banks” will only lead to 10 years of recession or even longer. Therefore, if the euro zone keeps kicking the can down the road, I am very worried that the euro zone economy may face years of recession. The euro will also be in danger, although the world economy needs the euro and the dollar to compete with each other in order to maintain the balance. If the euro collapses, it will lead to the appreciation of dollar, yen, and even RMB.        - in Shanghai’s First Financial Daily




Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.