Fund manager urges governments to act on Greek debt

Governments must put aside political differences and create the necessary bailout plan to prevent Greece's debt problems from escalating into another economic crisis on the scale of sub prime. That is the view of Mike Fox, Head of Equities at The Co-operative Asset Management, who today (28 April) is urging governments to act decisively and calm the situation.

Mike Fox said: "The parallels between this and the sub prime crisis, when the response came too slow to avert a severe recession, are striking.  

"Greece represents a broader issue of the government over-indebtedness prevalent in finances of other countries, particularly Ireland, Portugal and Spain, and that is why investors are so concerned.

"The EU's disparate political framework is proving problematic in getting the necessary support that would give stability and calm the markets.  Political will must start heading in the same direction as monetary need.  

"A swift and coordinated approach should prevent this from developing into a major crisis."