From CNBC via NetNet:
Hedge-fund manager Kyle Bass, Hayman Capital Management LLC managing partner, spoke exclusively to CNBC about Germany's next move.
Here's what he told me:"I believe that Germany and the balance of the Eurocrats will attempt to default Greece within the euro zone first. The frictions associated with such an event will prove to be problematic and the usual benefits of a substantially weakening currency that would historically accrue to the country in default will not be available to Greece. Greece will therefore be forced to go back to the drachma at some point in the near future."In the end, it is most likely that after Greece and the next peripheral country begin to hard default, Germany will exit the [European Monetary Union] and recapitalize their own banks. After recently conducting a population study on the German people, we have determined that the overwhelming majority of the people of Germany think that they would be better off never having formed the euro in the first place....MORE
And from Economic Policy Journal, Thursday Sept. 29:Is Germany Printing Up Marks will Abandon Euro
Long-time EPJ readers know that I have long identified Philippa Malmgren as a major insider.
She was Special Assistant to the President for Economic Policy on the National Economic Council (President Bush). She was also a member of the President's Working Group on Financial Markets, aka, the Plunge Protection Team. Her client list includes every elite corporate firm in the world (The list is here.).
She is now reporting, according to the Sweden's largest business paper, Dagens Industri, that she expects the Germans will announce they will return to the Deutschmark and that they have already ordered the new currency printed up.
UPDATE: This is what appears on her web site. Apparently, she is "speculating" that Germany is printing up marks:
News to expect in the coming days and weeks......MORE
•The Germans announce they are re-introducing the Deutschmark. They have already ordered the new currency and asked that the printers hurry up.