In the News: Morningstar

Merk positive on Spain, realist on Greece in Morningstar discussion:

Morningstar quotes portfolio manager Axel Merk:

"[...] Europe, [..] has taken significant measures to reduce deficits and, instead of subsidizing consumers, provides unlimited liquidity to banks to lend. Specifically, Merk is positive on Spain, as it consolidated its banking system prior to the stress tests, and its large banks are heavily exposed to more stable international markets such as Brazil. Merk believes that Greece will succeed in shrinking its deficit significantly, to 3% or 4%, and may then default, but the economy will feel a much smaller shock than it would now. "