- Prison Planet.com - http://www.prisonplanet.com -

War-Gaming Greek Euro Exit Shows Hazards In 46-Hour Weekend

Posted By yihan On May 23, 2012 @ 8:37 am In Money Watch | Comments Disabled

Bloomberg [1]
Wednesday, May 23, 2012

Greece [2] may have only a 46-hour window of opportunity should it need to plot a route out of the euro.

That’s how much time the country’s leaders would probably have to enact any departure from the single currency while global markets are largely closed, from the end of trading in New York on a Friday to Monday’s market opening in Wellington, New Zealand, based on a synthesis of euro-exit scenarios from 21 economists, analysts and academics.

Over the two days, leaders would have to calm civil unrest while managing a potential sovereign default, planning a new currency, recapitalizing the banks, stemming the outflow of capital and seeking a way to pay bills once the bailout lifeline is cut. The risk is that the task would overwhelm any new government in a country that has had to be rescued twice since 2010 because it couldn’t manage its public finances.

“Leaving is difficult and messy, so anyone who thinks it’s easy is just wrong,” said Lorenzo Bini Smaghi, who left the European Central Bank [3]’s executive board last year, in a phone interview. “The Greeks must be rational and protect themselves from rash decisions that they will live to regret. Leaving the euro is not the answer to their problems.” He declined to say whether he thought an exit would occur.

Full story here. [1]


Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/war-gaming-greek-euro-exit-shows-hazards-in-46-hour-weekend.html

URLs in this post:

[1] Bloomberg: http://www.bloomberg.com/news/2012-05-22/war-gaming-greek-euro-exit-highlights-hazards-in-46-hour-weekend.html

[2] Greece: http://topics.bloomberg.com/greece/

[3] European Central Bank: http://topics.bloomberg.com/european-central-bank/

[4] Cost of Greek exit from euro put at $1tn: http://www.prisonplanet.com/cost-of-greek-exit-from-euro-put-at-1tn.html

[5] Call for QE to Stave Off Euro Deflation: http://www.prisonplanet.com/call-for-qe-to-stave-off-euro-deflation.html

[6] Euro Officials Begin to Weigh Greek Exit: http://www.prisonplanet.com/euro-officials-begin-to-weigh-greek-exit.html

[7] Citi Ups The Odds Of A Greek Exit From The Euro To 90%: http://www.prisonplanet.com/citi-ups-the-odds-of-a-greek-exit-from-the-euro-to-90.html

[8] Biggest Greek bank warns of dire euro exit fallout: http://www.prisonplanet.com/biggest-greek-bank-warns-of-dire-euro-exit-fallout.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.