As the Greek debt crisis moves closer to becoming a Greek tragedy, concerns over how it could impact global markets and economies continue to grow. Marc Faber, editor of the Gloom, Boom and Doom Report, suggests one potential solution would be for the country to leave the European Union.
“I think the best outcome would be for Greece to leave the EU, and to reintroduce the drachma,” he said.
Faber said he believes there is a slim chance the scenario would actually occur.
“It will probably not happen for political reasons… eventually the EU and the International Monetary Fund and all these clowns in these financial institutions will work out the deal,” said Faber. “But even if the deal is worked out, I don’t think that market will react that positively.”
When asked if the crisis in Greece could lead to a global recession, Faber told FOX Business Network’s Adam Shapiro:
“I do not believe that Greece would cause a global recession, but it may be a catalyst for a more serious market decline.”