GUNDLACH: A 'Grexit' would be the beginning of the end of the euro
During a webcast for investors on Tuesday, DoubleLine Funds' Jeffrey Gundlach argued that a grexit would be bullish for the value of the euro in the near-term.
But a grexit event would "open up Pandora's box," he said.
"When one leaves, others join," he said. "There never one cockroach."
This precedent would effectively create a model for other debt-laden countries, like Spain or Portugal, to leave as well.
Gundlach reflected on U.S. just before the Civil War. Specifically, he pointed to South Carolina's decision to secede from the union in 1860. That was later followed by the secessions of Mississippi, Florida, Alabama, Georgia, Louisiana, Texas, Virginia, Arkansas, North Carolina, and Tennessee. They made up the Confederate States of America.
Citing the work of economist Martin Feldstein, Gundlach argued that a monetary union without a political union can't work.
"It's kind of the beginning of the end," Gundlach said of aGgrexit.
But for now, Gundlach likened the euro to being more like Rasputin in that "It doesn't want to die."
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance