A Grexit from the E.U., I doubt it! And we have a stake in it. If it happened it would hurt the U.S. badly.
It is very unlikely that the E.U. will allow Greek banks to go under with the possible consequences of Greece leaving. But seeming tragedy-about-to-ensue reports as both sides negotiate with the brinkmanship model in mind is likely to continue; more a la the countries on the other side of the Mediterranean than staid Germany. The major world stock and bond markets (with spillover into the commodities markets) have shown the greatest reversals of the year as rumors abound, first suggesting, then rejecting, then suggesting again the possibility of a deal. Standard and Poor upgraded the chance that Greece would leave the E.U. to greater than 50 percent. Tomorrow (Wednesday), according to the latest rumor, Greece will meet with Germany, and presumably Margaret Thatcher-like stubborn Chancellor Angela Merkel, to make yet another proposal. A meeting Sunday with all of the EU’s heads of state rumor is also being floated. We have also heard of a call by President Obama to Chancellor Minister Merkel today. Presumably this was to reiterate...Read More