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What If Greece Falls Out of The Eurozone?

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  • Description

    Krishna Memani of Oppenheimer Funds explains how Europe impacts the U.S. markets.

  • Duration 3:25
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I'm new elections in grace.

Will the political deadlock see Greece were turned to -- -- -- and kept the leaders of France and Germany agree on exactly how the tackle Europe's debt crisis.

And I don't hold your breath joining -- how is Christian I'm a money he's senior vice president and director of fixing Cummins Oppenheimer Funds who oversees -- 76 billion in assets.

A lot of money -- thank you for joining us this talk about Greece for us until I would need to be -- Greece -- because we have.

They always seem to be right on the abyss do you feel this is the end game now -- with regard to Greece.

I don't think so glad I don't think that.

Leaving leaving the eurozone I don't think that going back to the drachma.

I don't think big benefit salmon and you -- to do that.

Clearly there is the risk of that happening has gone -- by the still let him scenario rather than the base case the based -- for them to find some way.

-- seen the in the eurozone.

Well to do that obviously they have to put in some very severe -- have very severe austerity measures -- this is a problem viewers on why does that help you promote growth under those circumstances.

Does Germany have to kind of you know give -- a little bit those arguments I.

I think you're seeing those arguments being need across the entire continent.

So you heard the same message.

-- -- -- out of you know France just as humans as Greece.

So I I think generally has to relent a little bit on discount and I think they've they've probably -- -- -- you learn something from the -- that's Lanka.

The other days saying that may -- higher inflation in Germany may be acceptable.

You know the sort of -- that he never -- -- So I think there is some amount of flexibility there's no reason for them to offer that up.

Voluntarily.

But pushed into a corner -- probably would arrive at some sort -- arrangement that others can live with.

This does have an impact on the US -- that they -- -- the US is a lot better than out of the eurozone but every day we get a bad -- it does have an impact it.

Mostly not every time the mostly what impact will we have save Greece does fall out of the it was a.

Well I think the impact would be quite substantial and -- bad.

-- but I had though the thing to remember in this school around though.

Is that US economy is doing much better than where it was last -- it does cyclical components of the US economy -- getting traction so things that housing.

Is really bottoming and that that is very helpful in the housing bottoms bottoms out then.

And you have -- good employment growth consumption gets going.

So to 3% growth rate in the US can be accomplished without too much effort.

But -- as long as nothing falls apart.

New York and Europe what -- -- tends to overshadow a lot of things that -- took about.

What about the emerging markets it was all about the emerging markets not that many years ago but we haven't heard much from -- from those countries already.

Surviving are they showing any more growth I mean how they've been impacted -- Emerging markets or certainly growing but I think if you think about it the biggest delta the biggest change in outlook is probably going to be in emerging markets rather than Europe.

We know Europe is going to be a -- case for quite some time -- but we are expecting much -- markets and growth.

The unfortunate part is emerging markets are slowing and -- counting on policy makers to revive those economies.

If they'd been in doubt and able to than we have problems are -- the expectation is that they'll be able to do that but.

That is a meaningful load data seem to lots -- -- leave it right that Christmas thank you so much for joining us we appreciate it so -- and think about so little time thank you.

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