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Krishna Memani, SVP and director of Fixed Income at Oppenheimer Funds, on the Greek elections and what’s next for the eurozone.
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-- wire at a right Iowa the markets believe about the outcome of Greece's election was short lived as the spotlight shifted to Spain.
Country barring -- the Euro error record so what's next for the eurozone joining us now -- -- minimum mining director of fixed income at Oppenheimer Funds.
The results were really close though doesn't have frighten anyone.
-- they were there were not as clueless is people who are fearing citing as far as results go they've probably came out.
As good as one could've expected.
And -- it's not solving all the problems that we need to -- within Europe but does the election was a good outcome.
But just say agreed to austerity today doesn't actually mean you're gonna follow through that tomorrow as well you know not -- also I think the what they have agreed to is the fact that they are willing to remain in the Euro but at the same time tried to -- negotiated and get out of.
The austerity program that they have -- -- How flexible German and Germans and others would be remains to be seen.
The bottom line is I think in the current situation.
Unless you get some growth backing -- of this is an issue that -- be really be dealing with for a long long time.
And that and that's been a really important part -- at Spain at least has some.
Potential for growth doesn't it whereas Greece and it seems not so much at this point I.
I think if you really leave Greece with the sort of debt burden that it has and that kind of tried to delist the dead issue would just austerity.
In Greece would be in the situation for next 1020 years so that's not a -- situation at some point they'll have to cut -- -- of debt that the official.
Institutions have against Greece of the moment and -- boosting -- said to have been made that's and a debt more.
-- of the didn't allow them to carry it a little bit on the but lastly Webster interviewed -- -- an economist earlier overseas who.
Pretty US didn't even think they -- they could ever pay this back so acting -- current level they cannot -- they can never paid back but they can cut it down to a more manageable level.
And I think that's what they would -- -- -- too because if it is manageable than they can come up with an austerity program that you can get to.
Andy -- and -- they just can't get delivered a manageable loan save Greece stays does that mean basically everybody's.
I always have absolutely so Greece was the highest risk -- -- Save Greece staying everybody staying know it's a question of how do we get growth back or when does the ECB act isn't that the next big question -- so the floor growth to come back you have to have two things happen.
Either vote and not either what was some relief on the austerity front so some high levels of deficit -- of these countries.
And ECB supporting these countries about providing.
Then cheap funding.
And we need to see movement on board levels before we can breathe a sigh of relief so it's just waiting game now -- my money thank you very months.
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