NEW YORK ( TheStreet) -- European officials may have no choice but to kick Greece out of the eurozone, one market strategist said on Wednesday.
"(Europe) has to push these guys out because if they don't, the ramifications for the euro will cast their fate in stone," said David Nelson, chief strategist at Belpointe Asset Management. "A capitulation to Greece now would open up a Pandora's box for some of the other weaker economies inside Europe who will want consideration.'
The demise of the euro wouldn't occur overnight. Nelson said it could take as many as five years.
Greece is seeking $11 billion in financing to repay debts. Last month, the country elected Alexis Tsipras as prime minister. Tsipras has vowed to renegotiate the terms of the Greece's $269 billion bailout from the European Union and the International Monetary Fund. Those terms initially called for significant austerity measures on Greece's end, which Tsipras vows to scale back.
"I don't see the current prime minister backing down because he just got elected," Nelson added. "Germany is very upset by this, but they are a strong economy and while they benefit from the strong euro, if the euro disappears, Germany will be just fine."
Still, pushing Greece out against the backdrop of other economic pressures throughout the eurozone, such as deflation and high unemployment, may not be the best move from a timing perspective. After all, the European Central Bank is weeks away from embarking on a massive $1.2 trillion stimulus program to spur growth.
Although Greece is causing volatility across the markets, the situation may still be a blip on the eurozone's radar, given the relatively small size of the country's economy.
"Look at how Europe's markets are doing," Nelson said. "They came screaming out of the gate, certainly better than U.S. markets. I think the Europeans will do just fine with Greece out or in for the time being."
The Euronext 100 Index is up 9.8% since the start of the year, compared with the Dow Jones Industrial Average's 0.22% decline.
http://www.thestreet.com/story/13043455/1/greece-must-be-kicked-out-or-euro-will-eventually-disappear-strategist.html?
(για όσους το ψάχνετε το θέμα πάντως, διαβάστε ένα σοβαρό άρθρο εδώ: http://www.efxnews.com/story/27893/market-complacent-re-greece-rightfully-wrongfully-so-analysts?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Efxnews+%28eFXnews+%29)
"(Europe) has to push these guys out because if they don't, the ramifications for the euro will cast their fate in stone," said David Nelson, chief strategist at Belpointe Asset Management. "A capitulation to Greece now would open up a Pandora's box for some of the other weaker economies inside Europe who will want consideration.'
The demise of the euro wouldn't occur overnight. Nelson said it could take as many as five years.
Greece is seeking $11 billion in financing to repay debts. Last month, the country elected Alexis Tsipras as prime minister. Tsipras has vowed to renegotiate the terms of the Greece's $269 billion bailout from the European Union and the International Monetary Fund. Those terms initially called for significant austerity measures on Greece's end, which Tsipras vows to scale back.
"I don't see the current prime minister backing down because he just got elected," Nelson added. "Germany is very upset by this, but they are a strong economy and while they benefit from the strong euro, if the euro disappears, Germany will be just fine."
Still, pushing Greece out against the backdrop of other economic pressures throughout the eurozone, such as deflation and high unemployment, may not be the best move from a timing perspective. After all, the European Central Bank is weeks away from embarking on a massive $1.2 trillion stimulus program to spur growth.
Although Greece is causing volatility across the markets, the situation may still be a blip on the eurozone's radar, given the relatively small size of the country's economy.
"Look at how Europe's markets are doing," Nelson said. "They came screaming out of the gate, certainly better than U.S. markets. I think the Europeans will do just fine with Greece out or in for the time being."
The Euronext 100 Index is up 9.8% since the start of the year, compared with the Dow Jones Industrial Average's 0.22% decline.
http://www.thestreet.com/story/13043455/1/greece-must-be-kicked-out-or-euro-will-eventually-disappear-strategist.html?
(για όσους το ψάχνετε το θέμα πάντως, διαβάστε ένα σοβαρό άρθρο εδώ: http://www.efxnews.com/story/27893/market-complacent-re-greece-rightfully-wrongfully-so-analysts?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Efxnews+%28eFXnews+%29)
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