Tags: Wien | Greece | Italy | Default

Wien: Greece, Italy to Default but Will Keep Euro

Friday, 06 Jan 2012 07:41 AM

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Greece and Italy will default on their debts in 2012 but will not abandon the eurozone, as the continent's policymakers will find away to keep the currency zone from falling apart, says Byron Wien, Vice Chairman of Blackstone Advisory Partners.

U.S. stocks will rise in 2012, with the S&P 500 broad index of stocks surpassing 1400, up from current levels of around 1277, while U.S. unemployment rates will dip below 8 percent and oil dropping to $85 a barrel.

Many economists have pointed out that if Greece defaults on its debts, it will be forced to abandon the euro, which would pressure bigger countries like Italy to follow suit.

The ‘Unthinkable’ Could Happen — Wall Street Journal
Over one million Americans have heard the evidence for 50% unemployment, 90% stock market crash, and 100% inflation. Be prepared. Watch the Aftershock Survival Summit Now, See the Evidence.


That's not etched in stone, Wien says, pointing out policymakers will find a way to allow debt-ridden European countries to restructure their debts in a way that doesn't kill the currency zone as it exists today.

"Europe has much too much to lose if the European Union dissolves," Wien tells CNBC.

Furthermore, 2012 looks great for the U.S.

Unemployment rates will fall to below 8 percent from their current levels of around 8.6 percent, growth will top 3 percent, and oil prices worldwide will fall to $85 a barrel, down from over $100 today, thanks to greater extraction of shale and rock deposits in the U.S.

"Extraction from resources in the U.S. is going to be a game changer," Wien says.

European countries have remained committed to working through their debt problems and sticking with the euro.

Greek Prime Minister Lucas Papademos has said a messy default could come by March if the country didn't strike finance agreements with a troika of the European Commission, the European Central Bank and the International Monetary Fund and work out an exit strategy from the crisis.

"In mid-January, talks begin with the troika which focus on shaping a credible economic adjustment plan for 2012 to 2015," Papademos tells business leaders, according to Bloomberg.

"The implementation of the agreement to reduce the debt and continuation of financing of the country depends on that. Without this agreement with the troika and subsequent financing, Greece in March faces the immediate risk of a disorderly default."

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Rep. Paul Ryan: US Must 'Re-engage' on Welfare Reform

Wednesday, 20 Aug 2014 09:28 AM

U.S. lawmakers need to re-engage with the poor and develop welfare reforms to help lift people out of poverty, Rep. Pa . . .

Juan Williams: Examine Causes of America's Racial Fears

Wednesday, 20 Aug 2014 08:01 AM

Michael Brown's death ought to encourage blacks and whites to think again about the causes of racial mistrust, Juan Will . . .

Workers That Left Labor Force Want to Return

Wednesday, 20 Aug 2014 07:56 AM

An exclusive Reuters/Ipsos poll - which was conducted between June 6 and Aug. 8 - shows there are many retired, and othe . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved