Can Greece make it in the euro? Or is an exit now inevitable?

Something has to happen and in the end it does have to be a Greek exit. I'd be astonished if they can go more than two years. I'd be astonished if they could go even one year. It will become obvious, even if New Democracy [which backs austerity] is leading a new government within a couple of months it will obvious within a couple of months that nothing has changed. The forcing event is when the European Central Bank puts a stop to the emergency lending. Nobody wants to do that but at some point the numbers will make that unavoidable. There's a bank "jog" going on [in Greek banks] - a slow exit. If I was a Greek depositor I'd be trying to shift money out because there's a reasonable probability that after a long weekend you'll find out that it has turned into a new drachma account worth 50 or 30 per cent of what the original one was. Of course there could be action forcing events elsewhere. Spain is looking pretty interesting this week.