Ferguson: Others Will Follow Greek Tragedy
The world debt overhang is threatening the world recovery, because markets will realize at some point how risky it is and the yields on bonds will increase, Niall Ferguson, professor of history at Harvard University, told CNBC Thursday.
"I think we have a situation where Greece is leading the pack but other countries will follow," Ferguson said.
The spread on 10-year Greek bond yields over the German Bunds, a measure of how risky markets see the country's debt, surged to a its highest level since Greece adopted the euro on Wednesday.
Greece's debt is forecast to balloon to more than 120 percent of gross domestic product this year.
