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-- -- more what lies ahead for Greece and the European Union we want to welcome Markel patent cheesy Euro and Eurasia analyst with straps for and I guess it's it felt like Marco like everyone believes something wall.
Happen and yet there's always a new stumbling block right now what's the biggest obstacle in the way of resolving this issue.
Wald there's probably two obstacles.
The two biggest obstacles really are German domestic politics.
And now a third Greek domestic politics and so the real difficulty really since last year in May.
Has been how do you speak to -- used to problems and how do you speak produced two audiences.
Angela Merkel the chancellor of Germany -- -- both satisfy.
Her own that conservative.
Somewhat humorous skeptic of base.
In and social needs to present these bailout -- is as packages that don't -- really feed into moral hazard.
That they aren't sufficiently tough enough that not not everybody thinks that he can just live off of book.
Bail -- for rest of eternity on the other hand -- these bailouts can't be too tough because they will -- They wool of course cause riots in the streets of Athens in Lisbon and all the other cities and so that's the balance -- house to really be maintained.
But you know looking at your notes one thing that stood out to me -- you're saying -- -- to take a bigger role in its own bail -- in other words what we call in America putting more skin in the game.
What some of the things that you think Greece must absolutely do the put more skin and again.
This is this is the strategy that was used with Ireland were Irish pension fund actually chipped -- to want to bail out of its own state.
Would -- what's being what's being.
Demanded is that they really ramp up these privatization effort -- -- these public assets and if you know Greece you know that very little is actually privately held.
A lot of the assets are public companies are that you wouldn't even really think that they are publicly owned a you have -- -- you have airports you have ports.
You have property so literally -- Germans and other eurozone countries.
Are now seeing it's time to sell your islands but it's not a joke anymore now it's serious would this also means that the privatization agency there would undergo.
That that would implement this plan would be somewhat independent of the government.
What this means when translating -- from the -- speak means that the Germans will decide.
How Greek public companies are going to be sold off and this is a very contentious issue not just on the streets of patents but also for -- and -- because his own party.
And his own party allies expect -- would depend of these public enterprises for political patronage.
Margo let me ask you know so much why we pay attention to what's happening in Greece here in the United States is seems like Greece is the beginning of a long row of dominoes and that potentially knocking down agrees or any troubles in Greece is gonna create -- cascading effect.
Across then Nate across the region.
What's the worst case scenario here what could happen next if the Greek.
Situation does not resolve itself who's next.
Well if thought if let's say Greece decided that -- had enough and it decided to dead somehow magically if you will.
Leaving the Euro -- and defaulting and getting -- with 2.0 which sold its problems which should wouldn't and Atkins know it but let's say that.
-- you know the political situation we'll simply untenable.
And to decide to do this the problem would immediately before the holders of Greek debt.
Odd their deaths would essentially be defaulted on and this would put into question almost immediately whoever's holding Portuguese and Irish show.
That the government bonds but also private sector liabilities as -- And then of course the bigger question would be are it'll.
Italy and though also Spain.
These two economies are too large and Italy certainly cannot be bailed out Spain could be but not -- -- all the other peripherals fall first.
And so it could calls and other financial meltdown just like the Lehman Brothers however one thing to really remember.
Is that everybody is looking for a silver bullet for that one reason why you know this is going to cause Armageddon.
Too recent for the reasons that have come across my desk have been -- Are basically credit default swaps would be activated and everything would go.
On everything would collapse in the other one has been.
You know this idea that there's some sort of a mechanism that ECB is using to regulate current account deficits.
And you don't a lot of this stuff is not really that dangerous ultimately what people have to understand is that the -- and the eurozone they have the tools.
To perpetually mobile through.
They really do you have those tools available today however the question then the long term is where is the -- -- Right exactly when you use the word perpetual that scares the heck out of me because I want this thing to go away at least from our point of view I know from recent won't.
-- Pappas thanks a lot from -- -- we appreciate your time yeah I mean actually.
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