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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFive things you need to know about Greece's deepening economic woes
1. Who will lose?
Snip...... if Greece leaves the European Union......
Asset prices will plummet, inflation will soar, unemployment will be rampant and its economy will collapse.
In terms of the pure cash effect, Greece's exit will crystallise losses on all outstanding loans from EU nations through the European Central Bank and emergency funding currently standing at about 331 billion euros ($480 billion).
Germany and France between them account for 176 billion euros ($255 billion), almost half the total.
Then there is the private debt held by banks. Greece owes German, French and British banks roughly 30 billion euros, and the IMF holds a similar level of debt.
If the nation goes into default and is forced out of the eurozone, these countries would have to write off Greece's debts; that is a pretty strong motive to keep Greece in the tent.
http://www.abc.net.au/news/2015-06-29/five-things-you-need-to-know-about-the-greek-debt-crisis/6581818
Snip...... if Greece leaves the European Union......
Asset prices will plummet, inflation will soar, unemployment will be rampant and its economy will collapse.
In terms of the pure cash effect, Greece's exit will crystallise losses on all outstanding loans from EU nations through the European Central Bank and emergency funding currently standing at about 331 billion euros ($480 billion).
Germany and France between them account for 176 billion euros ($255 billion), almost half the total.
Then there is the private debt held by banks. Greece owes German, French and British banks roughly 30 billion euros, and the IMF holds a similar level of debt.
If the nation goes into default and is forced out of the eurozone, these countries would have to write off Greece's debts; that is a pretty strong motive to keep Greece in the tent.
The rest is a good, short read.
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Five things you need to know about Greece's deepening economic woes (Original Post)
dixiegrrrrl
Jun 2015
OP
hedgehog
(36,286 posts)1. A good explanation
lapislzi
(5,762 posts)2. #3: Goldman Sachs
Just another reason to hate those greedy fucks. I'd like to hope that one day they'll get what's coming to them in the form of torches and pitchforks, but I ain't holding my breath.
hack89
(39,171 posts)3. The Greeks went to Goldman Sachs for help in hiding their debt and deceiving the EU
when immoral politicians ask immoral bankers for help then what do you expect will happen? Goldman Sachs was not going to tell the Greek government that they needed to cut spending and reduce their deficits - they were going to say "how can we help you?".
enlightenment
(8,830 posts)4. Default and a potential exit from the EU
is survivable. Continuing to serve as a pawn/whipping boy for the troika isn't. I agree with Krugman on this issue.
http://www.nytimes.com/2015/06/29/opinion/paul-krugman-greece-over-the-brink.html?smid=fb-share
closeupready
(29,503 posts)5. This turmoil is likely good for the dollar and the bitcoin.
My prediction.
dixiegrrrrl
(60,010 posts)6. and gold. n/t