How Fast Would Contagion Spread If Greece Exits The Eurozone
by Tyler Durden
ZeroHedge.com
02/10/2015
It is very difficult for governments to control the progress of a monetary union break-up because the example of one country exiting will create a precedent in the eyes of other members of the monetary union. The transmission channel is not government bonds, nor equities, not currency markets, but banks. In the event of a Greek exit from the euro, the loss in the real value of Greek bank deposits would encourage bank depositors in other countries to withdraw their funds.
The process can be very rapid indeed.
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