Scholar,journalist and author Sebastian Mallaby,Director of the Center for Geoeconomic Studies at the Council on Foreign Relations,thinks the most plausible route to end the crisis is the issuance of a euro bond.German leadership is complacent over its own good economy.We are in a real cliff situation.The leaders are not there yet mentally.
You need to really shock the system and get growth back.High bond yields don't seem to be enough of a shock.It's up to the political leadership,not the European Central Bank.If Greece leaves the Euro-zone,there's nothing the ECB can do.
Mr.Mallaby is the author of "More Money Than God,"a book about hedge funds.It's a crowded,more competitive space.Hedge funds haven't done well during the crisis,he feels.Money market funds have pulled back their European exposure,but there is this confidence factor that is affecting U.S. performance-through the crisis' affect on China being a worry,for instance.
Mr.Mallaby has also written "The World's Banker" and "After Apartheid:the Future of South Africa."He was a longtime journalist with the Economist and is a columnist for The Washington Post.
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