Thursday, February 12, 2015

James Chapman — Europe must 'shell out' to save Greece: Boris Johnson warns of 'huge contagious impact' of country crashing out of the single currency

  • Boris said eurozone will unravel unless leaders 'shell out' to Greece
  • London Mayor urged end to 'stand-off' between Athens and Europe
  • He warned of 'contagious impact' of Greece crashing out of single currency
  • David Cameron urged Greek PM Alexis Tsipras to reach a compromise
Is the City getting cold feet? Or is Syriza holding their feet to the fire?

Daily Mail
Europe must 'shell out' to save Greece: Boris Johnson warns of 'huge contagious impact' of country crashing out of the single currency
James Chapman for the Daily Mail
ht Clonal

3 comments:

Anonymous said...

As J. Paul Getty said, "If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem."

Greece holds some major cards because it owes so much.

Unknown said...

Dan,
It is not just what Greece owes. It is all the stacked dominoes represented by the derivatives market - see Eurozone Crisis: 26 TRILLION In Currency Derivatives At Risk

NeilW said...

Actually Greece holds a lot of cards because it is the only country looking to spend and issue bonds.

With the ECB about to take €60bn of bonds out of the market every month in QE in a deflationary environment then that money is going to be seeking out somewhere that is spending.

That somewhere is Greece.

It'll be an interesting experiment in liquidity preference.