LEAKED MEMO REVEALS: What A Greek Default Will Cost Europe And The World
How bad would a Greek default—and even a Greek exit from the euro—really be?
A leaked report (via Athens News) penned last month by the Institute of International Finance, the organization representing private sector holders of Greek debt in official negotiations, gives us the most detailed data we’ve seen so far about how the eurozone and the world would be affected by such a move.
It also explains just why EU leaders are doing everything in their power to prevent a disorderly default and Grexit—the costs would be absolutely astronomical and the fallout uncertain.
And while investors may think that these costs are “priced in,” the IIF argues, a Greek hard default really might just be another Lehman.