- “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece's spirits. A Greek default will trigger an immediate magnitude 10 earthquake across Europe. Holders of Greek government bonds will have to write off their entire investment, the southern European nation will stop paying salaries and pensions and automated teller machines in the country will empty within minutes. The impact of a Greek default will rapidly spread across the continent, possibly prompting a run on the weaker banks of weaker countries. The panic escalating this way may sweep across Europe in a self-fulfilling fashion, leading to the breakup of the euro area.”
- “It’s one scenario among many, one which may lead to the breakup of the euro area via a banking crisis. This can still be averted. It primarily depends on the Germans, and secondly on European citizens, especially on how much the Greek population can tolerate.”
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