No one really wants to see Greece go under, but if the country has to default on its debt, there may be no time like the present ? literally ? say global investment analysts. Citigroup credit analyst Jason Shoup described the situation, saying that ?in the last six months, there?s probably been no better time to let Greece strategically default than right now.? Shoup cited last week?s positive recovery theme, pointing out that 15 of 23 recovery indicators beat expectations and that some economists even raised their growth outlooks for the full year[1]. In light of all this enthusiasm and arguably ?startling jobs growth? in the U.S., maybe now is the time to bite the bullet, he said.
Of course, where Greece goes, other nations are likely to follow. Many experts believe that Portugal will likely fall shortly after Greece, although some ? like Portugal?s prime minister ? do insist that the nation?s debt load is sustainable and has promised publicly that ?we will not allow what happened in Greece to happen here.? The prime minister compared Portugal?s debt profile to that of Ireland, which has been recovering ? sort of ? in the face of austerity measures adopted in order to meet bailout requirements[2].
Do you think that Greece should default? Is this even an option that should be considered?
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[1] http://www.cnbc.com/id/46281928
[2] http://www.reuters.com/article/2012/02/06/portugal-debt-idUSL5E8D63KB20120206
Category: Financial Markets
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