The European debt crisis is a "blessing in disguise" according to Michael Hasenstab, reported Reuters. Hasenstab, who PMs the $57 billion Templeton Global Bond Fund [profile], also criticized the dollar as a safe haven.

Hasenstab spoke during the 2012 Morningstar Investment Conference in Chicago:

I think the big fear is just the financial contagion from Greece and everything about banking and about debt markets is confidence. So I think that is the fear - that even though, fundamentally, Italy is solvent, Spain is solvent, you have enough bad confidence, you can turn a solvent situation insolvent.

He added that getting past thought the euro zone crisis is "going to be messy, but it's not Armageddon."

Hasenstab also said it is a "curse" to invest in the US, especially in Treasuries. This is because of the excessive credit through monetary easing, thus heightening the risk of inflation. 

Edited by: HFD


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