RT interviews University of Athens economics professor Yanis Varoufakis on the latest round of Greek bailout negotiations. While Varoufakis is no doubt right that the impact of a formal default would not be significant, given the fact that private sector bonds have already been restructured with a large economic haircut, he did not address specifically the impact of Greece leaving the Euro. My bet is that if that were to come to pass, the knock-on effects would be significant, since it makes it plausible that Spain or even Italy might exit, and that would worsen the current financial balkanization and silent bank runs.
- Links 4/19/14 - 04/19/2014 - Yves Smith
- Please Join Us at Our NYC Meetup Next Friday, April 25 - 04/19/2014 - Yves Smith
- Yanis Varoufakis on the “Success” of Greece’s Bond Sale - 04/19/2014 - Yves Smith
- Joe Firestone: Using Generational Warfare to Divert Attention from Oligarchy and Corporatism - 04/19/2014 - Yves Smith
- Links 4/18/14 - 04/18/2014 - Yves Smith