Morgan Stanley fears German exit from eurozone

Joachim Fels, Morgan Stanley's head of research, says the bailout for Greece may be necessary to avoid a wider European financial crisis, but he fears it also "sows the seeds for potentially even bigger problems further down the road", The Telegraph reports. "The backstop package for Greece and the ECB's climb-down on its collateral rules set a bad precedent for other euro area states and make it more likely that the euro area degenerates into a zone of fiscal profligacy, currency weakness, and higher inflationary pressures over time," he says. Fels says weak states would find it diff...