Tags: Wien | Greece | Italy | Default

Wien: Greece, Italy to Default but Will Keep Euro

Friday, 06 Jan 2012 07:41 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  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.

Share:
  Comment  |
   Contact Us  |
  Print  
  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
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Fla. Lawmaker Wants D'Souza's 'America' Shown in Schools

Friday, 25 Jul 2014 22:51 PM

A Florida state lawmaker plans to introduce a bill making conservative filmmaker Dinesh D'Souza's new movie, "America,"  . . .

PETA Paying Overdue Detroit Water Bills for People Who Go Vegan

Friday, 25 Jul 2014 21:37 PM

Amid angry protests over Detroit's effort to shut off delinquent water customers, People for the Ethical Treatment of An . . .

Wiki Blocks House Staffers After 'Disruptive' Edits

Friday, 25 Jul 2014 21:33 PM

The user-generated Web encyclopedia Wikipedia has blocked anonymous edits from some House staffers and lawmakers for 10  . . .

Most Commented

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

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