The Euro to Be a Failed Currency?

Now I find this extremely dang interesting. According to a column in the April 21, 2008, issue of Forbes magazine, there is some possibility that the whole common currency thing in Europe is failing. That is to say, the Euro will fail and the countries over there will revert to their old currencies, i.e., the franc, the deutsche mark, the lira, etc. Who knew?

The writer, Avi Tiomkin, is described as a "macroeconomic adviser to hedge funds." The gist of his argument is that different countries want and need different things economically, and it is these tensions that will ultimately lead some countries to abandon the euro and return to what they used before. He begins the column stating that

It is only a matter of time, probably less than three years, until the euro experiment meets its end.

He also states that

Along with the steep selloff that will precede the disintegration of the high-flying euro, other markets will be shaken.

He then goes on to recommend that investors should

Gradually start to hoard dollars and short the euro. Another strategy is to sell investments in Italy and Spain and buy German fixed-income assets.

I don't know about you but this is the first I've heard of this. Not that I'm some big investor to take measures to prepare, but I never dreamed something like a currency in use in such a large area even could fail. You live and learn, I guess. I know I'll be watching with interest in the next three years.