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IPFS News Link • Economy - International

Goldman: The Greek Solution "Exposes The Whole System To Collapse"

• http://www.zerohedge.com, by Tyler Durden

So does is Goldman optimistic now on the outcome of the Greek deal for Europe and the prospects for further Eurozone utopia? 

Hardly.

Echoing the harshly bitter sentiment of Wolfgang Munchau (and all non-Eurozone fanatics everywhere) who said that "The Eurozone As We Know It Is Destroyed", this is what Goldman has to say: 

In our view, there are two main factors keeping investors sidelined. One is the residual implementation risks involved in the latest arrangements. Political hurdles in Greece and among those creditor countries most recalcitrant to offer concessions without guarantees will leave short-term investors unwilling to bear the volatility from headline news in relatively illiquid markets. The second, of much broader importance, is the accumulated evidence of the inadequacy of the Euro area's present fiscal governance, which takes up too many resources and exposes the whole system to collapse. Unless rectified by credible steps towards greater integration and ex ante risk-sharing, long-term investors seeking exposure to duration will shy away.


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