IIF sees 1 trillion euro fallout from Greek default
(Reuters) - A disorderly default in Greece would probably leave Italy and Spain needing outside help to stop risks spreading, and cause more than 1 trillion euros (833 billion) damage to the euro zone, the Institute of International Finance said.
"There are some very important and damaging ramifications that would result from a disorderly default on Greek government debt," the IIF said in a document obtained by Reuters.
"It is difficult to add all these contingent liabilities up with any degree of precision, although it is hard to see how they would not exceed 1 trillion euros."
The document, obtained from a market source, was dated February 18 and marked "IIF Staff Note: Confidential."
http://uk.reuters.com/article/2012/03/06/uk-greece-bonds-idUKTRE8250AI20120306
xchrom
(108,903 posts)CAPHAVOC
(1,138 posts)Owlet
(1,248 posts)Elections in April will almost certainly result in the two major parties taking big hits. A number of Greek politicians are expressing buyer's remorse over the latest deal which pretty much assures drastic austerity for the next decade or so.
http://www.euractiv.com/euro-finance/greeces-crisis-shifting-financial-political-analysis-511286
Additionally We're already seeing Greek debtholders being reluctant to accept the latest 'bailout' deal which basically shelters the banks and the ECB and leaves them, the private investors, holding the bag. http://www.businessweek.com/news/2012-03-04/eu-leaders-must-get-past-debt-swap.
As in most slow-moving events like this, we'll just have to wait and see.
CAPHAVOC
(1,138 posts)Banks in dire straights. He will find a way. Just as in GM the private investors will be eliminated. The CDS will not pay off, and we will go on our Merry way. The never ending Ponzi will continue.