“Greece might be symbolically important for Europe but it’s no financial Lehman,” said Stephen Jen, managing partner of SLJ Macro Partners LLP in London. “The impact of default or exit will be bad on Greece, but any contagion will be limited. The European Central Bank is printing money, yields are still low, and the economy is experiencing a cyclical rebound.”
“Greece is not important in the long run,” said Jen. “A failure in Greece would effectively be an admission by the Europeans of a past mistake of admitting a country which clearly did not have the requisite strengths and discipline to be a member. It is this reputational risk and the difficulties in admitting past errors that I think are more important to the Europeans.”
Read the original article on the ‘Bloomberg’ website.