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: http://ftalphaville.ft.com/blog/2012/05/22/1010951/eurozone-exposures-charted-a-k-a-maltas-sorrow/
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: http://ftalphaville.ft.com/blog/2012/05/22/1011101/tourist-trapped-in-the-greek-bailout/
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"!
For more on this: http://ftalphaville.ft.com/blog/2012/05/22/1010951/eurozone-exposures-charted-a-k-a-maltas-sorrow/
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:
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"!
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