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 3/12/14 - 03/12/2014 - Yves Smith
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- New In-Depth Study Shows How Debt Collectors Abuse Legal System and Borrowers - 03/12/2014 - Yves Smith
- Bill Black Slams New York Times for Wink and Nod Endorsement of Criminal Conduct - 03/12/2014 - Yves Smith
- Washington Does Not Have a Natural Gas Weapon Against Moscow - 03/12/2014 - Yves Smith