Europe's firewalls may not be enough to stem Grexit investor panic
LONDON Thu Feb 19, 2015 11:03am EST
(Reuters) - For all the firewalls Europe put in place over the last three years, the actions investors say they would take if Greece left the euro currency bloc suggest the ensuing panic would rumble through financial markets.
The imminent launch of a bond-buying scheme from the European Central Bank has so far quelled the anxiety that in 2012, when Greece last looked set for the exit, prompted a steady stream of money out of the euro zone.
But this could quickly change if the current stand-off between the new anti-austerity government in Athens and its international creditors shifts the balance of probability toward Grexit.
http://www.reuters.com/article/2015/02/19/us-markets-greece-grexit-idUSKBN0LN17S20150219
I suspect that the London market's derivatives traders will have shifted the risk onto the US so we will be paying for it just like in 2007.
