CITI: Good News, We No Longer Think Greece Will Exit The Eurozone
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Last summer, Citi's chief economist, Willem Buiter, introduced a bold call: he assigned a 90% probability that Greece would exit the euro on January 1, 2013.
This assertion was made before European Central Bank President Mario Draghi introduced a new ECB bond-buying program, dubbed "OMT" (outright monetary transactions), which has more or less completely quelled the turmoil that the European sovereign debt crisis has inflicted upon markets over the past few years.
Needless to say, Buiter's dramatic call didn't work out. By October, Buiter and his team revised the odds of a Greek exit to 60%, and even then, only by the end of 2013.
However, they maintained that a Greek exit was still their base case, saying it would likely happen in 2014, after the German elections.
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