Harrison: eurozone default a question of 'when' not 'if'

EUROZONE DEFAULT A CERTAINTY

Leigh Harrison, the co-head of equities at Threadneedle, shares his views on eurozone sovereign debt and the strength of the banking sector.

"In my view, sooner or later there will be a sovereign debt default in the eurozone. It is a question of when, not if, because the numbers involved are simply too big as a proportion of GDP for trading out from under the debt mountain to be realistic. "Periodically, bond markets flirt with this possibility, but then policymakers jaw-bone the market or introduce some new policy initiative to reassure investors. "What alternative do they have? No-one seems to have spotted the fact that the latter actions seem to be largely based round the bigger fool theory, i.e. we will buy these probl...