Sunday, July 05, 2015

Drachma bound

Fox News: "Greece enters uncharted territory after referendum 'no' vote."  Not even close.  Everybody is saying that this will roil financial markets tomorrow, but hasn't this scenario been "baked into the cake"?  I mean, I thought the Grexit was inevitable months ago.

1 comment:

TM Lutas said...

Greece will print. That's what is baked in the cake. Who exits depends on what it prints. If it prints drachmas, Greece has exited. If it prints euros, Germany exits. Greece would love to print euros but they have to seriously bend a lot of EU norms to do it. They would become european pariahs. And that's the real red line that the troika dare not cross. They can't punish Greece beyond a certain point or Greece will have nothing to lose by printing the better currency for them.