Jim Rogers said in a recent interview that he was "stunned" when hearing of the size of the bailout the EU was going to provide for irresponsible countries who have refused to rein in their spending.
Rogers said on the sovereign debt crisis bailout that it will be simply "another nail in the coffin" for the euro, as it basically means Europe has forsaken the currency.
Rogers said, "This means that they've given up on the euro, they don't particularly care if they have a sound currency, you have all these countries spending money they don't have and it's now going to continue."
Nouriel Roubini has made similar observations and conclusions, saying the euro as a common currency for the region will probably be dropped sometime in the next several years in order for some of the countries to kick start their economies.
While Roubini thinks the euro has a chance to survive, it will only be used by countries with "stronger fiscal and economic fundamentals," he said. He sees a number of countries going off of the euro and a remaining few continuing on with it. That sounds like the European Union will be made up of only several countries in that case, and will effectively be finished.
Even so, it will be interesting if Roubini's scenario plays itself out like he envisions, as a core group of countries may actually thrive if they are willing to take the steps most of the countries in the EU have been unwilling to take concerning outrageous spending.
For Rogers, he's flabbergasted that Europe is willing to spend that type of money in order to keep these deadbeat countries running like they have been. It defies common sense, but these are politicians, so it's easy to understand why that's the case.
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