"Divorce Greece in haste, regret at leisure!" The world press knows little about economics or #Finance - if they did, they would be doing it rather than writing about it. But the amount written, and the bluster of financial jargon filling the news, is astonishing given that limited knowledge. The political implications of the Greek crisis have become the focus of a matter that is fundamentally financial.
The reality is a lot less dramatic than the crisis that is proclaimed.
From a purely financial prospective: if Greece defaults, the European Union is exposed in two ways. Firstly, the Germans might lose the money they have lent Greece. While this will irritate the German taxpayer, it will not damage the healthiest budgeted nation in both Europe and the world. Germany will emerge relatively unscathed. The relative value of 240 billion spread between several governments and international financial institutions is not really very large.
The second way is through contagion. Contagion should be regarded with caution, as the circumstances the world faces today make it unlikely. Firstly, the other PIIGS countries have been borrowing with rates at close to the German bund for over 2 years. They have learnt to put cash aside in case the markets panic. Secondly, the ECB has grown from the Euro crisis.
Draghi is arguable the prime market mover and he is well-versed in the business of Monetary Policy even by the standards of the eurosceptics. In addition, it seems to be fashionable to print money until the printing machines run out of ink, so the ECB will have no trouble persuading others to inflate their way out of a crisis, especially since inflation in Europe is at chronically low levels. #Government.
Greece will, moreover, remain a market to the Eurozone exporters, since exit from the Eurozone certainly does not meant an exit from the EU federation.