Siegel: ECB Will Devalue Euro

Wharton Professor and author Jeremy Siegel says he thinks the European Central Bank will eventually devalue the Euro to stem the debt crisis in Europe.

“My forecast is ultimately the ECB, in an attempt to save the union, will lower the euro,” Siegel says, according to Reuters. “We could see the euro going down to $1.10 or maybe even parity, as a last-ditch effort to save the periphery.” Siegel called Europe a “huge mess”, saying concerns that the Greek debt crisis will spill over to countries such as Spain and Portugal have resurfaced after the chaotic recent elections in Greece.

Siegel also says another round of quantitative easing from the Federal Reserve is unlikely. “There is virtually no chance,” he said. “Inflation isn’t low enough and growth isn’t low enough.”