A fund for the lunge. This is the spirit of Eurogeddon, the new investment fund that bets everything on the default of Greece and the collapse of the euro. The idea is of Krzysztof Rybinski, former Deputy Governor of the Central Bank of Poland. The economist announced its launch yesterday, in collaboration with the Polish operator Opera TFI. “For two years I have looked at the inability of politicians to deal with the euro crisis,” Rybinski said, “But they don't seem to have learned anything and are only making the situation worse. It will all end with the default of Greece”.
Apocalyptic words, which in the year of the end of the world, inspire due fear. Even more because they are supported by the US economist, Paul Krugman. The New York Times columnist wrote that the only possible solutions for Greece are both “apocalyptic” and “politically catastrophic”. According to Krugman, the options are: offer sustained aid (not loans) to Greece or that the Greek country abandon the euro.
Rybinski seems to agree with the MIT professor. There investment strategy for Eurogeddon it consists in holding positions futures court, in the squares of Warsaw, Frankfurt and Paris, and on Italian government bonds. And hold the position of long on gold, dollars and US treasuries Besides put options are and best indices of the main exchanges.
The Polish economist “hopes” that a deep eurozone crisis will yield hefty returns: “If the fund had existed during the collapse of Lehman Brothers, it would have gained 150%,” he has declared. And his forecasts estimate a recession of at least 5 years with contractions of between 2 and 4 percentage points in the area. (The most pessimistic official estimates are not -0,1% for the ECB and -0,5% according to the IMF).
If there are those who work to avoid the worst, there are also those who prefer to speculate and insure themselves against an apocalyptic scenario. It is an ethical question, that is, in finance, a negligible concern.
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