Kenneth Arrow on Greece and US debt limit

Nobel laureate Kenneth Arrow shares his views on Greece and European economy and also on US debt limit imbroglio.

As to Greece and the European soverign debt crisis, he suggest that "Greece should default", and that "the leaders in Europe allow the market to operate to some extent which gets the burden of political decision-making off the backs of the leaders. The idea of avoiding all defaults is, in his opinion", "an unsustainable ideal".

As to the possible consequences of failing to raise the debt limit or an actual US default, his opinion is that, the American and European economies may suffer somewhat and China, will probably be the net gainer in all of this due to future rise of interest rates.