A simplistic question, but one that may, I hope, cut to the chase: What is the problem if Greece and perhaps Italy and Spain simply default on their debts, and do nothing else? I can readily see that lenders would subsequently shy away from making any new loans to those countries, of course, but...so what?
Can we build a damage/risk tree out from this initial question? Cheers, Lawry On Jun 3, 2012, at 9:20 AM, Ed Weick wrote: > > There seemed to be some agreement yesterday that exit from the EU by Greece > and perhaps others like Spain and Italy was inevitable. But is it really? > Greece, Spain and a few other countries have huge debts -- but debts that are > denominated in Euros. It is highly unlikely that creditors would accept > repayment in far less stable currencies like the drachma or the peseta, and > default by some of the larger EU debtors could wreak havoc with the > international banking system. Exit from the EU is, IMHO, most unlikely > unless someone steps in and provides the kind of bailout supports needed. > Perhaps the IMF or, as Barry suggested, Russia? For a countries like Greece > or Spain, would being beholden to Russia be better than being under Germany's > thumb? > > Ed > > __._,_.___ > Reply to sender | Reply to group | Reply via web post | Start a New Topic > Messages in this topic (1) > RECENT ACTIVITY: > Visit Your Group > Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use > . > > __,_._,___
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