Thursday, 24 May 2012

The cost of Grexit

Well, for those that wonder what the cost of Grexit will be for others:

According to this table, the maximum total direct cost is ca. € 304 bn. That represents something between 1.8% to 4.3% of their GDP. It may be painfull but it's managable.
For more on this:

And for those that would like to contemplate what it would mean for Greece, that is after a unilateral break away from the memorandum (MOU) the consequent stop in financing from the TROIKA, a default on all public debt and thus cancel of all debt and interest payments and thus a return to a New Drachma? Follow me to the blackboard:

Tourism argument explained here: Thomas Cook and TUI slash prices for Greek holidays and prepare contingency plans in case of a ‘Grexit’, while Ryanair’s Michael O’Leary is praying for one. On Tuesday he was reported saying a return to the drachma could result in resort prices dropping up to 80 per cent, and lead to an ‘invasion’ of bargain-seeking British tourists.» for more:

All these of course assuming a can opener! A further 30% decline in GDP is a conservative scenario. Have a nice day Mr "Cheap_Rush"!

No comments:

Post a Comment

You can post your feedback or comment. Please remember to be polite and brief.