Thursday, June 14, 2012
What to look for in a post-Greek euro exit panicNobody knows exactly what's going to happen. If a major banking panic happens in Europe next week, US reporters will be scrambling to make some sense of it.
But there are some well-informed speculations and scenarios out there. This is one from Martin Wolf, Soros’ warning on the euro Martin Wolf's Exchange 06/11/2012. Wolf writes:
If a Greek exit were then to occur, a wave of panic seems probable, as even ordinary people decide (rightly) that a euro in an Italian or Spanish bank is definitely not the same as a euro in a German bank. The European Central Bank would need to deal with such capital flight via unlimited lender-of-last-resort operations. Even that might not be enough.Nick Malkoutzis takes a look at the conservative New Democracy (ND) Party's pitch for the Sunday elections in The Fear Factor in Greek Elections Bloomberg Businessweek 06/13/2012:
"You can’t bet Greece in a game of poker," Samaras told journalists in Athens on Wednesday. His party has staked its hopes on voters’ fear of a return to the drachma. The National Bank of Greece, the country’s largest lender, forecast at the end of May that incomes would shrink by 55 percent, gross national product would plunge by 22 percent, and unemployment would rise to 34 percent if the country were to exit the euro.Tags: austerity economics, eu, euro, european union, greece
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No subject for immortal verse
That we who lived by honest dreams
Defend the bad against the worse."
-- Cecil Day-Lewis from Where Are The War Poets?
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