A Greek exit from the euro is inevitable, Tom Hutchinson, senior editor of the Newsmax newsletter "The High Income Factor," told Newsmax TV.

“At this point, everyone knows they're going to exit, the question is when? It just becomes a matter of how long they're going to put this off, how long they're going to tango on,” he told “Newsmax Now.”

“The new Greek government has underestimated the ECB and Germany in their willingness to let them exit, so they don't have as much leverage as they thought, so negotiations are getting a little testy,” he said. “But my guess is that they'll find a way to put off the inevitable a little bit longer,” he said.

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“Europe is just crawling out of near recession, they're doing a lot better. They don't need this and the thinking is probably they'll be OK with a Greek exit and there won't be contagion to the peripheral countries — Spain and Italy,” he said. “But they don’t know for sure and they kind of really aren't in a hurry to find out.”

But is the euro done as we know it?

“I don't think so. I don't think so at all," he said. "Actually, a Greek exit would strengthen it. Spain and Italy are different story than Greece and they'll hang on. At least for the foreseeable future it'll be fine.”

About Tom Hutchinson
Tom Hutchinson is a member of the Newsmax Financial Brain Trust. Click Here to read more of his articles. He is also the editor of The High Income Factor. Discover more by Clicking Here Now.

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