Salient to Investors:
George Soros said:
- A failure to produce drastic measures could spell the demise of the Euro.
- Europe should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts – funding to come from the sale of European Treasuries, which would have low yields because they would be backed by each euro member.
- Merkel is worsening Europe’s crisis because countries need growth, not austerity, to pay down their debt – she has been leading Europe in the wrong direction.
- Greece cannot meet the conditions that have been set, and Germany is absolutely determined not to modify them, so expect Greece to be forced out of the euro.
- Neither Spain nor Italy can print money, making it likelier that financial markets can push one of them out of the bloc. Spain is likely to need a full bailout unless leaders announce drastic measures at the meeting.
- Stock and bond markets will react negatively if Europe fails to announce a plan this week to ease pressure on Spain and Italy.