Warren Buffett of Berkshire Hathaway Inc. (NYSE: BRK-A) has been on CNBC this morning and he has an interesting observation about the future of the Euro. When asked about whether the Euro would exist even one year out he answered “I Don’t Know.” What he did say is that the Euro would not ultimately exist as it was originally designed.
Buffett always makes analogies and he brought up one that will hit home for political historians. He quoted Henry Kissinger saying, “If I want to call Europe, who do I call?”
While on CNBC he was also quoted saying that things are beginning to slip pretty fast in Europe, and that is particularly the case over the last six weeks. He did say he is confident that they will get it worked out by ten years from now, but unfortunately there is no obvious answer right now. Buffett pointed out that a big part of the problem is that it is not clear who is in charge. Not owning a printing press any more creates that many more problems.
CurrencyShares Euro Trust (NYSEMKT: FXE) is the go-to exchange traded product for the Euro and it is indicated down about 0.7% at $121.19 this morning against a 52-week range of $121.45 to $144.93.
JON C. OGG