greek default!!, page-6

Let us all be aware that it is just plain ignorant (possibly intentional fearmongering) to say Greece will go 'bankrupt'. Worst case scenario at this point is a 50% default or debt reduction. Again, that is worst case scenario, there's plenty of other outcomes both possible and likely. A smaller default seems the most likely outcome at this point imho.

French and German governments and banks have repeatedly confirmed they can handle a 50% default. Ratings agency Fitch has said they expect a greek default will be covered by a write down in earning for German banks and is unlikely to result in any downgrades. Total German exposure is roughly ~$30bn with the vast majority held by the government, not banks.

A smaller default would mean an even smaller problem.

IMHO using words like bankrupt in relation to Greece is either ignorant irrational hysteria or out right dishonesty.

Also lets not forget the Greek economy is roughly the size of the NSW ecomony. Contagion fears have been greatly overdone. It has already been confirmed that Ireland for one will not default. The Spanish bond auction at the start of September went well. But wont see these stories plastered all over the news.

I suppose that means little in a market that will fall 4%+ on rumours of French/German downgrades even when ratings agencies emphatically deny the rumours.

Christian Noyer, governor of the Bank of France
?No matter what the Greek scenario, and whatever measures must be passed, French banks have the means to face up to it.?