Citigroup’s Michael Saunders has informed clients that Greece WILL leave the eurozone on January 1st, 2013, and that Grexit will be followed by a series of policy responses aiming to prevent a domino-style collapse of the banking system and escalating economic disruption. Saunders expects the new Greek currency to immediately devalue by 60%, and ‘unleash a massive wave of contagion across Europe’.

With the new Greek bonds now in a free-fall, if anything, Saunders’ note to clients seems optimistic on the timing of the Greek Euro exit/ contagion.
This is likely the last major gold and silver correction/ buying opportunity prior to the sovereign debt tsunami approaching land in the West.  Have you already purchased your insurance?
QE Will continue to Infinity…AND BEYOND!!

Greece will leave the single currency eurozone on January 1, 2013, a senior economist at the world’s second-largest currency trading bank has claimed.

Citigroup’s Michael Saunders said Greece’s new currency would fall in value immediately by 60 per cent – and unleash a massive, yet manageable, wave of contagion across Europe.

In a note to clients, he said the likelihood of Greece leaving the euro in the next 12 to 24 months was now between 50 to 75 per cent – and assumed there would be a ‘Grexit’ at the start of next year.

The firm based its case on the belief that Greece would fail to form a government capable of implementing austerity measures after its next set of elections on June 17. This would ‘accentuate’ the stalemate between the nation and its creditors.

Mr Saunders said: ‘We assume Grexit occurs on January 1, 2013, with Greece staying in the EU and receiving external loan support [to mitigate risks of social unrest and collapse of civil society].

‘We expect that Grexit will be followed by a series of policy responses aiming to prevent a domino-style collapse of the banking system and escalating economic disruption.’
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  1. Jan 1 2013.  Good guess  Why not  Jan 5, 2013  or November 27, 2012.  If anyone should know about making DA guesses, with my a**hat firmly planted on my head, it’s me. 

     Massive yet manageable contagion?  Right.  Saunders has clearly never heard of Y pestis, aka the Black Death.  That was manageable too, if you died.   It only killed half the European population in 1438.   Coming from some drone at Citibank the whole prediction is laughable.  As for me, I predict the Greece will exit the Euro on August 8th 2012.  The same day I go to the Toby Keith concert in South Lake.

  2. Well I can say 25% to 50% they won’t. What’s with all the Predictions? a year ago it was Greece Will Default now it’s Greece will leave the Eurozone. Give me a break, My prediction? Keep Stacking you’ll need it.

  3. Designs For The New Drachma Were Leaked On Sept 29th 2011–Telly Savalas Is Interesting– Who Loves Ya Baby!—But Becky Quick?–I Think The Perennial, “Let’s Sit On Worn Buffet’s Lap” Girl Face On a Greek Note Is Too Much!

    READ MORE

    Maybe Telly’s Face On The New Drachma In An Economy Gone Insane Will Make Sense After You Look At His Performance In The Twilight Zone:

  4. Ya AG I don’t thing Greece will wate until next year to try to make the switch.

    We expect that Grexit will be followed by a series of policy responses aiming to prevent a domino-style collapse of the banking system and escalating economic disruption.’


    Good luck with preventing anything!!!

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