Who is afraid of a Grexit?

euro reflectionInfluential analyst Nouriel Roubini* has called any Grexit (Greek exit from the eurozone) a massive disaster for the Eurozone with widespreading consequences that will infect the financial systems of other eurozone countries. This will especially apply to those banks in the distressed countries (like Spain). The lie being peddled by some of the eurozone cowboys (that a Grexit is no problem) is now horribly exposed.

*Senior Economist for International Affairs in the White House’s Council of Economic Advisers during the Clinton Administration is a very influential economist and financial analyst who has  built a reputation based on independent thinking and challenging the self-serving stories of insiders.

See video of interview with Roubini here

The euro-Commisars backpeddling has already begun with Dutch Finance Minister Jeroen Dijsselbloem saying that there are other ways of ending the crisis without resorting to a euroexit. Dijsselbloem, who heads the group of euro area finance ministers, told a Dutch radio station (BNR Nieuwsradio on Tuesday) that the 2013 Cypriot bailout shows temporarily shutting banks and restricting the flow of capital could stabilize Greece’s financial system and allow it to remain part of the currency union. In other words, they will threaten to collapse the Greek banking system (like they threatened the Cypriots) in order to force a “solution” that doesnt threaten them with a Grexit. This game will require the ECB to play the same hard game that it applied to Cyprus – but the stakes this time are higher, and that is why Roubini argues that it is in everyone’s interest this time to find a mutually acceptable solution.

 

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