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.
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