Legendary financier George Soros is at it again, talking over the weekend about a potential euro collapse. But don't bust out your old Greek drachmas, Portuguese escudos, Italian lira or Spanish pesetas just yet.
Soros spoke at a conference in Vienna on Sunday. According to several reports, he said Europe was "on the verge of economic collapse" and that the likelihood of countries leaving the euro currency "is probably inevitable."
But some market experts think Soros is, at best, a bit premature with this gloomy prediction.
"Soros has obviously gained a lot of credibility on calling currencies that he thought would decline, devalue or go away," said Rob Stein, senior portfolio manager with Astor Asset Management in Chicago. "But I don't think the euro is going away. I don't see how that would benefit Greece, Portugal or others."Stein said that Greece leaving the euro would be like a teenager who runs away from home thinking that they can support themselves -- and comes sheepishly back once they realize that a roof over their head and three square meals a day is worth putting up with their parents.
"Greece would become a Third World country very quickly if it left the euro," Stein claimed.
For more: George Soros talks down euro again. But why now? - The Buzz - Jun. 27, 2011
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