« previous next »
Pages: [1]

Author Topic: Thoughts about a bankrupt Greece - possible consequences.  (Read 4125 times)

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Thoughts about a bankrupt Greece - possible consequences.
« on: June 16, 2015, 03:03:09 pm »
Although Greece accounts for less than 2% of EU GDP, a bankrupt state (or Grexit) could have serious repercussions.

1. Contagion. Italy, France, Spain, Portugal may need to implement (more) debt reducing measures. Risk premiums on for example Spanish bonds have already risen, pushing yields up sharply.
2. Confidence in the Euro as currency will take a knock.
3. The U.K. will realise that lender EU states will be obliged to provide huge rescue packages for Greece. Do they still want to be part of the EU ? (Nope).
4. Greece may forge much closer ties with Russia.
5. A crumbling Greek neighbour will help ISIS to destabilise the Balkan states - they are already at it.

So all in all, not a pretty picture.
Logged

Nivek

  • Sr. Member
  • ****
  • Posts: 295
  • Karma: +6/-1
    • View Profile
Re: Thoughts about a bankrupt Greece - possible consequences.
« Reply #1 on: June 16, 2015, 03:50:19 pm »
Well it will most likely mean they have to leave the EU. There would also likely be a bank run, which if you're a gambling man, could see a sharp rise in the price of bitcoins. After leaving the EU they would lose the euro so it'd be back to the good old drachma. I expect they'd start printing plenty of it, so they'd have a very high inflation rate. So basically, a very bad time to be earning your salary in greece.

From what I've read the rest of europe should be ok thanks to the ECBs bond buying program, so while there could be a correction in the markets, there probably won't be a catastrophe.
Logged

gcr

  • Hero Member
  • *****
  • Posts: 1008
  • Karma: +28/-1
    • View Profile
Re: Thoughts about a bankrupt Greece - possible consequences.
« Reply #2 on: June 16, 2015, 03:57:28 pm »
Found an interesting site
http://countrymeters.info/en/Greece - you can change to a selection of countries and it deals with population stats
Greece is actually quite a small country in terms of population
Interesting read this site
Logged
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

Patrick

  • Administrator
  • Hero Member
  • *****
  • Posts: 2550
  • Karma: +47/-2
    • View Profile
Re: Thoughts about a bankrupt Greece - possible consequences.
« Reply #3 on: June 16, 2015, 04:47:56 pm »
Quote from: gcr on June 16, 2015, 03:57:28 pm
Found an interesting site
http://countrymeters.info/en/Greece - you can change to a selection of countries and it deals with population stats
Greece is actually quite a small country in terms of population
Interesting read this site

Might be off topic here, interesting site, but even more interesting to me is that it shows South Africa's population as decreasing? And apparently has decreased since 2014. I never would have guessed, but according to the figures it's due to the net migration of 147 000 plus people. Yikes! I wonder if this count illegals coming in to SA. I'm guessing not.
Logged

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Thoughts about a bankrupt Greece - possible consequences.
« Reply #4 on: June 23, 2015, 03:46:23 pm »
Hmm... looks better.

Logged
Pages: [1]
« previous next »