Commerzbank CEO Mueller: Greece Should Exit Euro Zone

Message to the people of Greece:

Got physical gold and silver? Protect yourself from any devaluation threat NOW.

Flashback:

Belarus Devalues Its Currency By 56% Overnight, Against Every Currency Out There:

Luckily for those who held their “money” in the form of gold and silver, they just got an instantaneous 56% value preservation and a relative boost in their purchasing power with just one central bank announcement.

Belarus Hyperinflation Update: Food Runs Out As Friendly Foreigners Take Advantage Of The ‘Favorable’ Exchange Rate Arb


Commerzbank’s Mueller Recommends Greece Exit Euro Zone – Report (FOX Business/Dow Jones Newswires, Jan. 31, 2012):

FRANKFURT – The Supervisory Board Chairman of Germany’s Commerzbank (CBK.XE) said he recommends that Greece leaves the euro zone, according to a pre-release of an interview by TV broadcaster Deutsches Anleger Fernsehen.

“I am strongly convinced that Greece needs a massive devaluation which it can’t carry out within the euro,” Mueller is quoted as saying, and “we can’t compensate for this with transfer payments.”

“Despite being a hurting process, I think Greece would be better advised to declare its exit,” as “Greece can’t be rescued within the euro,” Mueller said, according to the German broadcaster.

“Markets will understand, that, if Greece exits, this doesn’t mean who is next,” so he doesn’t expect contagion, Mueller is quoted as saying.

Banks could write down their entire exposure to Greece immediately, Mueller said, according to DAF.

“When you are at 70% or 80% and you’ll likely have to add to it, you can ask if you won’t stop it immediately, meaning write down entirely,” he is quoted as saying.

Commerzbank CEO Says Greece Should Exit Eurozone (ZeroHedge, Jan. 30, 2012):

As if Merkel did not make it all too clear over the weekend that Germany no longer wishes Greece to be part of the Eurozone, and that the ball is now in Athens’ court to accept what is a glaringly unfeasible demand, i.e., to hand over fiscal sovereignty over to “Europe” with Merkel having the cover of saying it did everything in its power to keep Greece in the union, here comes Commerzbank’s CEO Mueller to pick up where Merkel left off:

  • COMMERZBANK’S MUELLER SAYS GREECE SHOULD EXIT EURO ZONE
  • COMMERZBANK’S MUELLER SPOKE TO DEUTSCHES ANLEGER FERNSEHEN

Presumably this means that German banks have sold off all their Greek bond exposure, and believe that the Eurozone would be better off without Greece in it. However, that Commerzbank, or one of the most insolvent banks in Europe, and only in line with Dexia, is confident that it can withstand the contagtion that would follow, only makes us even more skeptical that a Greek default and Eurozone departure will be contained, and in all likelihood will have scary implications for all European banks, not only German ones. Just ask DB’s Ackermann…

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