Wednesday, June 17, 2015

Here's What the Smartest People on Wall Street Are Saying About Greece

Here's What the Smartest People on Wall Street Are Saying About Greece

Buffett, Fink, and Dimon weigh in
Acropolis Hill
A Greek national flag flies from a flagpole above tourists visiting Acropolis hill in Athens.
Photographer: Yorgos Karahalis/Bloomberg
With all the drama in the euro zone, there's been no shortage of  Greece-related questions for Wall Street's luminaries.
Below is a roundup of what big investors and banking luminaries have been saying. The takeaway: Wall Street seems pretty sanguine when it comes to Greece—perhaps surprisingly so.
Warren Buffett
Berkshire Hathaway Chief Executive Officer Buffett.
Jeff Kowalsky/Bloomberg
Here's Warren Buffett, billionaire investor, speaking in March:
If it turns out the Greeks leave, that may not be a bad thing for the euro. ... If everybody learns that the rules mean something and if they come to general agreement about fiscal policy among members, or something of the sort—that they mean business—that could be a good thing.
—Interview with CNBC
BlackRock Inc. Chief Executive Officer Larry Fink Speaking At Credit Suisse Global Megatrends Conference 2015
Fink, CEO of BlackRock, speaks during the Credit Suisse Global Megatrends Conference 2015 in Singapore.
Sam Kang Li/Bloomberg
Larry Fink, chief executive of BlackRock, spoke with a Dutch newspaper last month and said:
A Greek departure from the euro is far less disastrous than making concessions that can also be claimed in other countries.
—Interview with Het Financieele Dagblad
Jamie Dimon
JPMorgan Chase CEO Dimon.
Tim Boyle/Bloomberg
Jamie Dimon, chief executive of JPMorgan Chase, wrote in his letter to shareholders in April that:
We must be prepared for a potential exit. ... We continually stress test our company for possible repercussions resulting from such an event. ... After the initial turmoil, it is possible that a Greek exit would prompt greater structural reform efforts by countries that remain.
—Letter to shareholders
Axel Weber, president of the Deutsche Bundesbank
Weber, president of the Deutsche Bundesbank.
Hannelore Foerster/Bloomberg
Axel Weber, chairman of the Swiss bank UBS, said in April that:
I've just come from a meeting of the International Monetary Fund. There, the consensus is increasingly that a Greek default would be systemically controllable.
—Interview with Neue Zuercher Zeitung
Charles Munger, vice chairman of Berkshire Hathaway Inc.
Munger, vice chairman of Berkshire Hathaway.
Daniel Acker/Bloomberg
Charles Munger, vice chairman at Buffett’s Berkshire Hathaway, said in May that:
[The] euro had a noble motivation and has done some good but has created strains by connecting countries that shouldn't be. You shouldn't create a partnership with your drunken, shiftless brother in law.
—Berkshire Hathaway's annual shareholder meeting
Duquesne Family Office Chairman Stan Druckenmiller
Druckenmiller, chairman and chief investment officer of Duquesne Family Office, speaks during a television interview at the Robin Hood Investors Conference in New York, on Nov. 22, 2013.
Peter Foley/Bloomberg
Billionaire investor Stanley Druckenmiller told Bloomberg TV in April that:
The banks don't own Greek debt any more; Draghi has QE at his disposal. My guess is there won't be contagion. But even if there is, he can contain it—and as soon as market participants see that, you won't get contagion.
—Bloomberg TV
According to a Bank of America Merrill Lynch survey released on Tuesday, many investors are not anticipating a negative outcome in the euro zone.
Some 43 percent of respondents said they expect a "positive" resolution. About 42 percent said Greece will default but is unlikely to exit the monetary unit and only 15 percent said they expected a so-called 'Grexit.'

No comments: