"[Greek] orderly default in the short term is the most likely scenario"
- Marc Ostwald, senior strategist at Monument Securities
The euro zone's debt crisis will remain unresolved, even if Greece defaults in the forthcoming months, believes Marc Ostwald, senior strategist at Monument Securities.
"No one will be writing down the part [of Greece's debt] that the European Central Bank owns, and it leaves the debt-to-GDP ratio for Greece at 120 per cent in the best case scenario. There needs to be a much greater write down of Greek debt, and it has to go across the board."
"An orderly default in the short term is the most likely scenario but this situation is not going to go away. We might get a hard default in 3 to 6 months time," said Mr. Ostwald.
Bob Parker, senior economist at Credit Suisse is equally pessimistic on Europe's outlook. "There are two fundamental failures in the euro zone at the moment. Firstly, the lack of political will to add additional funds to the European bailout fund. Second, where is the growth strategy in Europe?"
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