Short seller Yu ‘wildly bullish’ on Greece in euro exit scenario

[unhappycamper]

http://www.ekathimerini.com/200228/article/ekathimerini/business/short-seller-yu-wildly-bullish-on-greece-in-euro-exit-scenario



Short seller Yu ‘wildly bullish’ on Greece in euro exit scenario
TRISTA KELLEY
13:39

Daniel Yu, best known for betting against companies via his short-selling firm Gotham City Research LLC, says he’s waiting in the wings for Greece to leave the euro -- so he can start buying.

The short seller shot to fame by claiming to expose dubious practices at companies, and says that won’t change any time soon. But now, he’s eyeing Greek shares in the event the country repudiates its debt and exits the shared currency. When, not if, all of that happens, stocks will rise again, he says.

“I’m going to be wildly bullish if they leave, I’ll look at anything and everything Greek,” Yu said by phone from New York. “If Greece leaves the euro, it basically means they’re not going to pay their debt, and that’s a good thing. Once you have debt relief, there are so many positive things that can happen to an economy.”

Recently back from a trip to Greece, Yu says the plight of the Mediterranean nation has now caught his attention. With the country running out of money, the International Monetary Fund and many economists agree that its debt is too large for it to pay. Prime Minister Alexis Tsipras surrendered to the demands of its creditors in a July summit billed as Greece’s last chance to stay in the euro, but he said he capitulated because leaving the currency would have been too destructive.

[DetlefK]

1. And his calls for Grexit totally aren't selfish and profit-driven.

Sure, Greece would be left with a worthless national currency, with no exports worth mentioning and with the stigma of structural weaknesses and irresponsible budgets... but think about how great this chaos would be for Wall Street! Grexit now!

I mean, that's what Greece needs, right? Shady Wall Street investors.

[unhappycamper]

2. I seem to recall that Goldman Sachs had something to do with hiding loans in the early 90s.

Vulture capitalism at it's worst.

[DetlefK]

4. Greece hired GS to hide its national debt after 2000.

In one instance, the debt was converted into some kind of investment-tool and basically disappeared for a few years, only to become debt again a few years later. But in the meantime it was off the books.

[bemildred]

3. Yeah, I was thinking about that, and I imagine other people are too. nt