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Pro: Early Stages Of EU Falling Apart?

Though it may sound dramatic, investors are honestly starting to wonder if the financial situation in Europe is about to cause another crisis.

Jittery investors went into sell euro first and ask questions later mode after chatter suggested Greece was in some serious trouble.

According to a slew of reports, Athens may soon be unable to meet its debt obligations. Resulting scenarios range from a second EU bailout to debt forgiveness “that would hit taxpayers in Germany and other countries straight in the pocketbook.”Meanwhile, S&P downgraded Greece's credit rating further into junk territory to B, just one notch above Pakistan. The ratings agency mirrored concerns, saying Athens may have to reduce the face value of its bonds by up to 70 percent. That implies a big losses for investors.

Also speculation is swirling that what’s happening with Greece may soon happen with other nations including Italy and Spain.

What's next?

According to reports sourcing Germany’s Spiegel Online, Greece has raised the possibility of exiting the euro zone and reintroducing its own currency. Greek officials have denied the report, with one official calling the report “ridiculous”, however that didn't stop the Street chatter.

“I would caution anyone taking government officials at their face value,” says strategic investor Dennis Gartman. In fact, Gartman thinks Greece leaving the EU is an inevitability.

And it’s not just Greece that he thinks will part ways with the member nations. According to Gartman it’s all of southern Europe.

Gartman thinks differences among nation's that led to wars in ages past, will lead to the EU's demise as well.

”These are nations of vast religious differences, philosophical differences and productivity differences, there’s just a vast chasm,” he explains. "And now we’re seeing those differences pull the union apart. They just can't exist together any longer."

Whether it happens in 2 weeks or 2 years, he fully expects a break. ”Northern European are finished paying for the Southern Europeans,” Gartman says.

If Gartman's right, in the near term, he says there will be confusion and the currency will trade off. But after the dust settles, "the new currency of the Northern Europeans (Luxembourg, France, Germany, Belgium) will be a demonstrably stronger currency. But Greece has to have its drachma. Spain has to have its peseta back, Italy needs to have its lira back."




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Trader disclosure: On May 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman owns (C); Finreman and Finerman's firm own (CVS); Finerman's firm owns (IBM); Finerman's firm owns (JPM) and is long (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm own (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's firm is short (IWM), (SPY), (MDY); Finerman's firm owns s&p puts; Finerman's firm owns Russel 200 puts; Terranova owns (XOM); Terranova owns (BAX); Terranova owns (SLV); Terranova owns (TCK); Terranova owns (APA); Terranova owns (HOC); Terranova owns (OXY); Terranova owns (UPL); Terranova owns (FCX); Terranova owns (BX); Terranova owns (V); Terranova owns (VRTS); Terranova owns (JPM); Terranova is short (NFLX); Terranova is short S&P Futures; Cortes owns (EXC); Cortes owns (SO); Cortes owns (TGT); Cortes owns (K); Cortes owns (KFT); Cortes is short Nasdaq futures; Cortes is short EEM vs S&P long; Cortes is short EUR vs USD and CHF; Seymour owns (AA); Seymour owns (AAPL); Seymour owns (F); Seymour owns (POT); Seymour owns (SLW)

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