A Grexit may actually be the best solution for both Greece and the rest of Europe in the long run.
So says Paula Wieck, a portfolio manager at CLS Investments, who argues that markets will over-react negatively if Greece the Eurozone. In a note submitted to us, Wieck writes that initially, a Grexit would result in high Greek inflation, a weakened currency, and a rattled financial system. However, she adds:
“Once its currency stabilized and it started its own form of quantitative easing, all without the strict bailout rules currently in place, it could slowly put its economic and financial system back together…