Europeans Need to Embrace Radical Change to Save the Euro

Europeans Need to Embrace Radical Change to Save the Euro PR Newswire LONDON, December 3, 2012 LONDON, December 3, 2012 /PRNewswire/ -- A Greek exit and profound restructuring could be the least painful scenario for saving the Eurozone Latest e-book from Saxo Capital Markets argues Eurozone needs to reach rock-bottom before recovery The Eurozone will bounce back only once its leaders and inhabitants end up in such a desperate situation that they realise the only way out is through radical change, says Saxo Capital Markets. http://photos.prnewswire.com/prnh/20121115/574147 Steen Jakobsen, Chief Analyst at Saxo, comments: "We are now nearing the point of no return for Europe. Time is running out for Europe as 2012 became an issue of letting the central banks do the dirty job of keeping the tail-risk away though Draghi's put and general easy monetary policy." "A Greek exit may sound like a frightening scenario, but profoundly restructuring the Eurozone may be less painful than a slow Japanese style death, with deflation, massive fiscal deficits, negative real-rates, housing prices lower than 30 years ago and a stock market valuation at less than 50% of its peak." In "The Euro in crisis", the third chapter of the e-book in Saxo Capital Markets' FX Debates Series, Saxo analyses the unfolding of the Eurozone crisis as a three-stage process, following its evolution through phases of denial, protest and, ultimately, change.