Welcome to Doomsday, warns Wall Street seer
Andrew Ross Sorkin
June 19, 2012
If you want to be scared, truly terrified, listen to Mark J. Grant. He might be right.
For the past two years, Grant, a managing director at a regional investment bank in Florida, has been predicting the bankruptcy of Greece and a cascade of chaos across the global economy, attracting quite a following on Wall Street in the process.
“Greece will be forced to return to the drachma and devalue, and the default will cause bank runs and money flowing into Germany and the United States as the only viable safe haven bets,” he declared in the days before Sunday’s Greek elections, irrespective of which party would win. “Greece will default because there is no other choice regardless of anyone’s politics.”
He then walked through the falling dominoes: “It will hit the [European Central Bank], the banks on the other side of the derivatives contracts, all of the Greek banks who are really in default at present and being carried by Europe as well as the nation, and the Greek default will spread the infection in many places that we cannot imagine because so much is hidden and tucked away in the European financial system.”
Welcome to Doomsday, brought to you by Grant. He says he doesn’t think of it as such; he calls it “reality”. He told me, almost hopelessly, “There’s only so much money to go around.”