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 12/21/13 - 12/21/2013 - Lambert Strether
- Obama Exempts “If You Like It You Can Keep It” Cancelees from the Individual Mandate - 12/21/2013 - Lambert Strether
- Vincent Huang: On the Nature of Money - 12/21/2013 - Lambert Strether
- Links 12/20/13 - 12/20/2013 - Yves Smith
- The Fed’s Taper and Market Fealty - 12/20/2013 - Yves Smith