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Nick Sargen, Fort Washington Investment Advisors CIO, on German Chancellor Angela Merkel’s visit to Greece, and what the trip means for the Eurozone...
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Thank you yet.
Our German chancellor Angela Oracle's first visit to Greece since the country's debt crisis started was met by really large protests against those tough cutbacks.
Course -- more need of more on this and the future of the Euro zone we're joined by -- sergeant -- Washington's chief investment officer.
-- I'm glad you're here with us today -- I don't.
You know -- -- -- -- a crystal ball on this right but Angela Merkel was -- Greece today if there's a good sign for Greece are bad.
-- it's definitely a good sign up think where we where Tracy three months ago when.
The fear was a Greek government would be elected that would repudiate.
Austerity.
And Greece was out and that's when the markets were at -- -- So this is kiss and make up time Angela Merkel isn't going to be going to Greece with bad news if she had bad news she would have stayed and Germany.
So what she's really doing is playing to the German audience saying.
It's time that we do support the Greek government which will undertake the necessary austerity measures so it's a good sign.
So Greece Greece stays in the eurozone you're saying.
For the time being -- -- so let's move on to Spain Spain now gonna need a big bail out are they get asked for finally.
I think it's just a matter of time again my thought process is the following.
You -- the major development to it to -- -- mitigate the risk of a financial meltdown was when Mario Draghi was able to negotiate.
The ability for the European Central Bank to buy Spanish Italian bonds whatever.
In the secondary market so the precondition though is of course of these governments would have to go to the bailout the government's the ESM.
And say we need.
We need these funds and then there would be conditions right so again I think the heart the heavy lifting has been done this is why the Euro -- stabilize.
So for Spain now to say I don't need it or won't do it which just upset the apple cart so to -- simply a matter of time so just do it already really.
-- years in general -- -- of a lot of people are still can't for the breakup of the -- altogether.
Yes and that was certainly a legitimate question to be asking three months ago I -- -- a -- it would make it but I have to admit I had some questions.
And I think again -- my point at Tracy's a lot of people say nothing fundamentals -- Europe still in recession of course in the union isn't a perfect union of course.
But think of the three things that are critical first Mario Draghi puts his credibility the eurozone is here to stay secondly they negotiate.
Which was very difficult negotiation this ability to purchase bonds in the secondary market and I gave them right the bazooka.
The third thing was creation of a unifies banking system -- ECB.
So great Friday's Spain asked for the bail out Euro -- intact that is good step -- sergeant thank you so much yes get right to the point for us -- are doing with -- Washington.
That's good.
