White House Refutes European Complacency: Warns Grexit Threatens Global Economic Recovery

Despite our exposure of the contagious risk increases in peripheral bond spreads, "many European officials believe a Greek exit would be manageable, and in contrast to 2010-2011, we wouldn’t see the same cascading effect on countries like Spain or Ireland,” according to the European Centre for International Political Economy in Brussels and EU Chair Jeroen Djisselbloem even noted that "the Greek situation can be isolated."

Germany also confident...

  • *SCHAEUBLE: EUROPE WON'T TAKE RISK TO ENDANGER GLOBAL ECONOMY
  • *SCHAEUBLE: EURO ZONE HAS OVERCOME CRISIS, THERE’S NO CONTAGION

However, it appears America is getting nervous at Europe's apparent complacency... White House economic adviser Jason Furman says a Greek exit from the euro zone would present "VERY LARGE AND UNNECESSARY RISK FOR GLOBAL ECONOMY."

  • WHITE HOUSE ADVISER FURMAN SAYS "GREXIT" INVOLVES LARGE TAIL RISK, COULD IMPEDE INVESTMENT, CREATE UNCERTAINTY IN MARKETS AND THREATEN ECONOMIC RECOVERY

And UK Chancellor George Osborne is not so complacent:

“The situation in Greece is the one at the moment that’s the most worrying for the world economy,” Osborne told reporters.

 

“A misstep could easily return the world economy to the situation we were in 3 or 4 years ago”

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Still we are sure everything will be fine...