Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Greece Eurozone Exit Consequences?

Stock-Markets / Eurozone Debt Crisis May 22, 2012 - 02:44 AM GMT

By: Ian_R_Campbell

Stock-Markets

Why Read: Because possible (read likely, or even 'virtually certain') contagion issues arising out of a Greek Eurozone exit will be important to you - whether you invest in the financial markets or you don't.

Featured Article: An important article with a 17 slide PowerPoint presentation was published recently by Business Insider. Said to have been generated following review of "several months of research", the following overviews conclusions set out in the presentation. In summary, among other things, the presentation suggests that if Greece exits the Eurozone:


  • Greece will pass exchange rate laws for a 'new drachma', and will prevent outflows of bank deposits. In turn, it is suggested this would contribute to a "massive" black market for the "new drachma";

  • the "new drachma" would collapse in value against other fiat currencies;

  • Greek political and societal unrest will proliferate;

  • the European Central Bank would face contagion difficulties, as would Eurozone Country Central Banks, to the point the respective solvency of some could be threatened;

  • Greece GDP could be drop by as much as 50%;

  • contagion could result in large outflows of deposits from Italian and Spanish banks;

  • the European Central Bank might adopt measures toward fiscal integration of the Eurozone;

  • the European banking system might of necessity infuse more money into the Greek banking system;

  • the Euro would likely devalue against other fiat currencies in the short term, but less so than the "new drachma"; and,

  • Enhanced litigation between Greece and foreign lenders could ensue.

Commentary: Whether you invest in the financial markets or not, you ought to:

  • read the short overview that precedes the slide presentation;

  • review the detail set out in that presentation;

  • think very hard about what you read;

  • consider contagion and collateral economic damage issues; and,

  • Discuss your own conclusions arising out of that process with your financial advisor(s), and with your most financially astute friends and acquaintances.

Given what is going on in the Eurozone - particularly with reference to Greece and Spain - but also with reference to France, Italy, Portugal, and The Netherlands to name but four other Euro countries, things seem to be increasingly spinning out of control. At least it seems that way as evidenced by the ever increasing number of daily media reports, and the content of those reports.

GET READY: This Is What Happens If Greece Exits The Euro

Source: Business Insider, Simone Foxman, May 17, 2012 Reading time: 6 minutes, thinking time much longer You might also want to read on the same topic:

Economists React: What if Greece Exits the Euro Zone?

Source: Wall Street Journal, Real Time Economics, Katie Martin, May 18, 2012 Reading time: 4 minutes

What Will a Greek Default Mean for You?

Source: Financial Sense Blog, Jeff Rubin, May 17, 2012 Reading time: 3 minutes

Ian R. Campbell, FCA, FCBV, is a recognized Canadian business valuation authority who shares his perspective about the economy, mining and the oil & gas industry on each trading day. Ian is also the founder of Stock Research Portal, which provides stock market data, analysis and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. Ian can be contacted at icampbell@srddi.com

© 2012 Copyright Ian R. Campbell - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in