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2012-05-24 14:42:02 Economist Predicts Greece Exit Eurozone by January 1

Transcript by Newsy: http://www.youtube.com/user/NewsyWorld?feature=mhee (Image Source: ) BY EMILY ALLEN Citigroup Chief Economist Willem Buiter says Greece will leave the Eurozone by early 2013. Business Insider quotes him on the possible Greek exit — or Grexit. "A Grexit can be contained, he thinks, in a sense that it will not trigger other countries to exit the eurozone, but other countries will face the issues of higher costs of borrowing and recession. In any case, Grexit will not be the end of the Euro crisis." The economist estimates the country's currency value will immediately fall 60 percent and remain there for five to six years. Still, CNBC quotes the economist who suggests that ... "...A Greek EMU exit could be triggered by the government's need to print money to cover its spending." This comes after the 27 European Union leaders met in Brussels in an effort to reign in the debt crisis. Fox News spoke with Italy's foreign minister who attended the meeting. "It is very important to pass a clear message to the Greek public opinion and to the lead forces that there is no way without the Euro. The Euro is there to stay." But Britain's Deputy Prime Minister warns Eurozone countries that Greece needs to stay in the Eurozone or there will be repercussions. Here's ITV. "Mr. Clegg will criticize the notion that Greece's exit could be a good thing for the rest of Europe. He's expected to say that Europe must show leadership to find a way out of the crisis." The uncertainty of Greece's fate is also toying with U.S. markets. CNN's business correspondent pointed to Greece as the cause for the Dow's 164-point drop Wednesday. "There isn't much faith of anything substantial coming out of these meetings now and so you're seeing those fears really play out in the markets right now." "The big concern here, as Wall Street sees it, is how is this going to affect the global economy?" Greek officials predict the country will run out of cash by the end of June.

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