Warren Buffett told CNBC Thursday that he does not believe that the collapse of the euro is ‘unthinkable.’
“I know some people think it’s unthinkable…I don’t think it’s unthinkable,” Buffett said in an interview.
Buffett also said he believes that although a tremendous political effort will certainly be made to save it, it may nevertheless collapse, this is not simply because struggling peripheral countries like Portugal must find a way to resolve fiscal crises, but because the single currency system is fundamentally flawed.
“You can’t have three or four or five countries that are in effect free-riding on the other countries. That won’t work over time—they have to get their fiscal houses in reasonable harmony,” he said.
