Amid faltering negotiations and looming default, Wall Street now predicts a Greek tragedy coming to the world stage.
Half of respondents in the latest CNBC Fed Survey said Greece will leave the euro zone in the next three years, up from 39 percent in April and the highest percentage in the survey's history.
"Geopolitics simmer," said Subodh Kumar, founder of consulting firm Subodh Kumar & Associates. "Greece trials and tribulations reflect worldwide tendencies for politicians to procrastinate and to use easily availed money not to restructure but instead to ingrain munificence."
One in 4 respondents said geopolitical risks are the biggest danger to the U.S. economy, up from 1 in 10 in the prior survey. It shows that Wall Street thinks the U.S. economy is doing OK on its own but its biggest threats come from overseas. Global economic weakness is seen as the second-biggest threat to the recovery. Foreign weakness relative to a stronger U.S. economic picture has helped bolster the dollar, viewed by some economists as a risk to U.S. growth.
"One need look no further than 1Q 2015 to get an idea of how the dollar can impact economic output," said Guy LeBas, fixed income strategist at Janney Montgomery Scott.