Jim Rogers: "I'm long the Euro."

Discussion in 'Economics' started by Debaser82, Mar 8, 2010.

  1. "Well I’m long the Euro because I expect them to come through this one okay. Either Greece is going to be papered over and they’ll give a blast to the Euro, or they’re going to let Greece go bankrupt. In my view, this is what they should do because then people would say, “Wow. They’re serious about sound economies in Europe.” That would make the Euro very strong. Then people would know they are not just going to print money or paper over failure.

    Either way, I think there’s probably a rally coming. There’s a huge short position in the Euro and whenever there’s been a huge short position in anything, it’s sometimes profitable to go to the other side. So, I am long the Euro because I think there are too many pessimists.

    Maybe Greece will go bankrupt and the Euro will collapse before people realize, “That’s good … that’s not bad.” Sometimes it takes a lot for perception to become reality or reality become perception."

  2. I thought he just got done saying he was looking for a dissolution of the EU?
  3. zdreg


    he has said for years that market forces will cause the dissolution of the euro. he has never said a time certain for the event.

    what does a rally have to do with dissolution? the answer is basically nothing.
  4. benwm


    Jim Rogers missed out the third possibility:-
    No other nation has the stomach for bailouts and spending more taxpayers money on Greece and so the situation just lingers in the background for months on end. Short term fixes are applied when required but nothing to address the structural weaknesses. So EUR keeps drifting lower...

    And whatever European policy makers say in public about evil speculators they are secretly quite happy for EURUSD to slide another 20%...

    It only really matters to Greece at this stage.

    Maybe if EURUSD dropped to $1 or got really cheap other nations might they start panicking about the EUR freefall and actually do something concrete, but I don't see the political will at this stage.

    'Schadenfreude' is the word that springs to mind..
  5. Schadenfreude = Malicious joy

    Greece is being scapegoated but the EU is responsible for a lack of due
    diligence in accepting their initial membership
    the problem for the EU is they never had a method in their charter to deal
    with the financial situation they've got, however it isn't just Greece that has
    the financial problem, Spain, Italy, Portugal have similar problems and the
    knock-on is that many European banks have provided financing to many EU
    members so there's a sub-surface financial 'crisis' throughout the EU

    so far as Rogers is concerned, i thought he was long the $ and as long as
    the $ continues to rise the euro etc will fall

    the plus side of a lower valued euro is exports
  6. He's saying this at a technical bottom, so really its a low risk trade for anybody.
  7. I thought he was the worst trader ever!

  8. risky63


    it does look like it wants to "roll up"
  9. Another nice call, Jim.

    I'm curious where he thinks we are heading next.
    #10     Oct 1, 2010