US Treasury Secretary Warns Europe about Grexit

U.S. Treasury Secretary Jack Lew said he feared Greece leaving the euro zone by “accident” and warned that the country and its creditors needed to “double down” their efforts so they can meet the next debt payment deadline.

Speaking at the London School of Economics, Lew said that a “miscalculation” at this stage could lead to a fresh crisis that could potentially be “very damaging”.

Lew’s comments echoed those of chief economic adviser at Allianz, Mohamed El-Erian, who told CNBC on Tuesday that there was an increasing probability of a financial “accident” involving debt-strapped Greece.

El-Erian pegged the chances of an “accident”—in which Greek and European officials loose the ability to control Greece’s future—at 55 percent to 60 percent, which he said was higher than what he had predicted just a few weeks ago.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza