Grexit, page-374

Gungadin

Personally, I'm with the Greeks. I think that they have been treated appallingly with the sons being made to pay for the sins of the fathers. I think that they should default. If they stay in the Euro, they are doomed to more of the same. Reverting to a devalued Drachma, is likely to be good for their economy. My only concern is that they probably don't have the administrative smarts to pull it off in an orderly fashion.

The one thing we might disagree on is the systemic consequences of Grexit. I regard them to be very small and no justification for investing gold as protection against a global crisis triggered by Grexit.
- Too small: Greece is 2% of the GDP of the EZ.
- All the German banks with Greek loans have been forced to either sell the loans or set aside additional capital.

I think that the FT is right when it calls Grexit a political crisis rather than an economic crisis.

Cheers