Friday , 28 July 2017


What Would the Consequences Be If Greece Exited the Eurozone?

Given what is going on in the Eurozone – particularly with reference to Greece and Spain – but also with reference to France, Italy, Portugal, and the Netherlands, things seem to be increasingly spinning out of control. Should Greece exit the Eurozone there will most certainly be contagion issues arising which will be important to you whether you invest in the financial markets or not. Let’s take a look at them. Words: 502

So says Ian R. Campbell (www.StockResearchPortal.com) in edited excerpts from one of the components of his subscription service* which is presented here with his kind permission for posting on www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in any article re-posting to avoid copyright infringement.

In his most recent commentary in which he reviews an important article – with a 17 slide PowerPoint presentation – that was published recently by Business Insider ( see here) Campbell goes on to say, in part:

Said to have been generated following review of “several months of research”, the following are the overview conclusions set out in the presentation.

My Synopsis

In summary, among other things, the presentation suggests that if Greece exits the Eurozone:

  • Greece will pass exchange rate laws for a ‘new drachma’, and will prevent outflows of bank deposits. In turn, it is suggested this would contribute to a “massive” black market for the “new drachma”;
  • the “new drachma” would collapse in value against other fiat currencies;
  • Greek political and societal unrest will proliferate;
  • the European Central Bank would face contagion difficulties, as would Eurozone Country Central Banks, to the point the respective solvency of some could be threatened;
  • Greece GDP could be drop by as much as 50%;
  • contagion could result in large outflows of deposits from Italian and Spanish banks;
  • the European Central Bank might adopt measures toward fiscal integration of the Eurozone;
  • the European banking system might of necessity infuse more money into the Greek banking system;
  • the Euro would likely devalue against other fiat currencies in the short term, but less so than the “new drachma”; and,
  • Enhanced litigation between Greece and foreign lenders could ensue.

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My Comments

Whether you invest in the financial markets or not, you ought to:

  • read the short overview that precedes the slide presentation;
  • review the detail set out in that presentation;
  • think very hard about what you read;
  • consider contagion and collateral economic damage issues; and,
  • Discuss your own conclusions arising out of that process with your financial advisor(s), and with your most financially astute friends and acquaintances.

There are an ever increasing number of daily media reports that warrant your review in addition to GET READY: This Is What Happens If Greece Exits The Euro namely: Economists React: What if Greece Exits the Euro Zone? and What Will a Greek Default Mean for You?

 *(The above is just one of many of Stock Research Portal’s daily commentaries, critiques, ‘Think for Yourself’ challenges and ‘Speak For Themselves’ World Headline summaries. Subscribe now to receive our full, unabridged newsletter.)

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Related Article:

1. What Will the Financial Repercussions Be If Greece Defaults or Leaves the Eurozone?

Greece-Flag-130x90

I want you to under­stand the grav­ity of what Europe is fac­ing; Europe has BET THE FARM and the croupier is about to roll the dice. We are all fac­ing a momen­tous instant in time and all of the noise in the back­ground is quelled by the show­man announc­ing the main event. Let’s Roll! Words: 625