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20 Apr 2015
Two key points to be resolved for the Greek crisis to end – BBH
FXStreet (Barcelona) - Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, highlights the two key points necessary to be resolved for the Greek crisis to end.
Key Quotes
“There are two key points that must be recognized and resolved for the crisis to end. First, European officials want to argue that EMU is irreversible. Many say that Greece exaggerated its performance to get into EMU in the first place. If it did, it was not alone. In fact, the liberal interpretation that allowed Germany and France in was wide enough to let other peripheral countries join.”
“Even if Greece ought not to be in the EMU, as some argue, that train has already left the station. The issue now begins with Greece being a member. A Grexit would resolve the issue for ever more that the EMU is reversible.”
“Second, Greek debt is not sustainable. It has reached economic and political limits. For the last few months, the argument is been cast as either Greece makes the necessary reforms, or it leaves EMU and defaults.”
“US states failed in the 19th century or some US cities failed, including most recently Detroit, No one seriously contemplated them (city or state) from leaving the union.”
“Just as Europe has devised rules and procedures (standardize) the failure of financial institutions, it needs to do the same with regions and states. And it needs to do this within the confines of monetary union. Greece is once again proving to be the catalyst for the evolution of Europe.”
Key Quotes
“There are two key points that must be recognized and resolved for the crisis to end. First, European officials want to argue that EMU is irreversible. Many say that Greece exaggerated its performance to get into EMU in the first place. If it did, it was not alone. In fact, the liberal interpretation that allowed Germany and France in was wide enough to let other peripheral countries join.”
“Even if Greece ought not to be in the EMU, as some argue, that train has already left the station. The issue now begins with Greece being a member. A Grexit would resolve the issue for ever more that the EMU is reversible.”
“Second, Greek debt is not sustainable. It has reached economic and political limits. For the last few months, the argument is been cast as either Greece makes the necessary reforms, or it leaves EMU and defaults.”
“US states failed in the 19th century or some US cities failed, including most recently Detroit, No one seriously contemplated them (city or state) from leaving the union.”
“Just as Europe has devised rules and procedures (standardize) the failure of financial institutions, it needs to do the same with regions and states. And it needs to do this within the confines of monetary union. Greece is once again proving to be the catalyst for the evolution of Europe.”