Feb. 14, 2012, 10:58 a.m. EST
Arguments against Greek euro exit running thin
Commentary: A euro exit could actually spark hope in Greece
By MarketWatch
WASHINGTON (MarketWatch) — So the argument for Greece not defaulting and not exiting the euro run something like this:
A Greek default would make a pariah in international markets. A Greek euro exit would cause its depositors to flee, and leave not just the nation, but individuals and businesses with debts that overnight would jump by at least 25%.
The problem with those arguments is that they have basically come true anyway, with Greece in the euro and not yet in default. Data released Tuesday showed Greece’s economy shrank 7% in the fourth quarter.
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Now the Germans and a few other nations are actually demanding what was suggested in this column somewhat facetiously — that an arrangement be made (an escrow account) so that creditors are repaid no matter what the Greeks come up with. In other words, an explicit, international bailout of Greek lenders. http://www.marketwatch.com/story/eu-and-imf-should-bypass-greece-give-to-germany-2012-02-09
Full story: http://www.marketwatch.com/story/arguments-against-greek-euro-exit-running-thin-2012-02-14
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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