Greek Debt & Future Of Euro
by Reza Ganjavi
What a mess!! Greece still has €315bn in debt -- 175% of its GDP -- and wants to roll back the austerity measures and promises to the world which bailed it out, and the newly won Syriza party says it wants half of the debt written off which doesn't seem will happen.
This can't be good for the future of Euro yet the long bonds of even countries with more uncertainty like Spain kept stable despite the Syriza win. I always knew macroeconomics is highly unpredictable and not necessarily deterministic. Let's call it a complete mess. Some pundits say Euro will go to parity with the Dollar. Who knows... One thing I know is US economy is where it's at – the US has always shown a great economic resilience for many reasons including the fact that it is the hub of innovation.