Analyst to Money Managers: Take Your Cell Phones with You on Vacation; Greece Could Default in August
Greece will eventually default on its debt because the country is highly indebted, Carl Weinberg, chief economist at High Frequency Economics, said on CNBC this morning.
A restructuring of Greek debt could happen as soon as August, when Greece is due to receive another tranche of funds from its lending agreement with the International Monetary Fund (IMF) and the European Union, according to Weinberg.
You can’t take a country that’s over-borrowed and make it more creditworthy by lending it more money,” he said. “They’re throwing Greece further and further and further in the hole by not addressing the problem directly and properly.”
Asked when a Greek default could happen, Weinberg answered: “at High-Frequency, we are advising people to take their cell phones on their August vacation.”