In this Cool Video from this morning on CNBC, I warn that the euro will continue to decline, and that that depreciation is part of how the euro area will recover. As I argued a couple of years ago, Greece is likely to remain in the monetary union. The idea that Germany (or France) suggest that the euro area could survive without Greece is simply a negotiating stance, and one in which some members of Merkel's government have already distanced themselves. Moreover, though I did not say it in this interview, I recall many thinking the same thing about Lehman. I know I was surprised by aftermath of Lehman's demise. Lastly, I do not think it is particularly helpful to say one side in a negotiation in blackmailing the other. Syriza has accused the Troika of blackmailing it. Those sympathetic to the creditors accuse Greece of blackmailing them. This is simply hard-fisted negotiations.
Click here for the video.
Cool Video: CNBC Euro Decline Part of the Solution, not the Problem
Reviewed by Marc Chandler
on
January 06, 2015
Rating:
Reviewed by Marc Chandler
on
January 06, 2015
Rating:
