Warren Buffet Says Grexit Could be Good for EUR

Billionaire investor Warren Buffett told CNBC that if Greece ended up leaving the euro zone, “that may not be a bad thing for the euro.”

Asked by CNBC’s Becky Quick Tuesday whether it could be a good thing for struggling Greece to leave the 19-country single currency union, Buffett said, “it could be a good idea (in) several ways if everybody learns that the rules mean something.”

“If it turns out that the Greeks leave, that may not be a bad thing for the euro,” he added.

The chairman and chief executive of multinational holding company Berkshire Hathaway said that it was not “ordained” that the euro had to have “exactly the same members it has today” but it did need adequate management, he believed.

“But it is ordained that over time the countries in the euro zone have to have somewhat compatible labor laws, fiscal deficits, general management of their economy that don’t result in outliers that really aren’t playing the game the way the rules are supposed to be and we may find out very soon about Greece,” he said.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza