what happens if Greece leaves the Euro?

[pscot]

This article doesn't assign blame. It just looks at how it's likely to go down.

Analysts say a Greek exit from the euro, or “Grexit,” could be chaotic and complex. It would probably involve shutting banks and ATMs to prevent people from withdrawing money before it could be translated into a new, cheaper currency. Bank accounts and mortgages would be switched to the new currency. It could take months to get new bills in circulation, forcing people to use euros for small transactions or resort to non-cash payment.

Here are some back-of-the-envelope calculations of the potential damage.

COSTS TO GREECE

Economists at Commerzbank estimate the economy, which has already shrunk by a quarter since the crisis started, would contract by another 10% in the first year after Greece leaves the euro.

The new drachma would plunge by 50% or more against the euro as the central bank prints money to keep banks going. That would mean imports such as medicine, autos, and oil and gasoline would skyrocket in price.

http://business.financialpost.com/investing/what-would-it-actually-cost-

[Warpy]

1. The Germans will undoubtedly make it as unpleasant as possible

to keep Portugal, Italy, Ireland, and Spain disciplined and in debt.

Best of luck to the Greeks on getting their country back from the banksters. Best of luck to them getting their rich to pay their damned taxes. And best of luck to them on restoring a rational economy there, getting people back to work and able to feed their children.

[laundry_queen]

4. yep. nt

[AngryAmish]

2. This is stupid and wrong.

If Greece wanted they could contract with any large printer and in 24 hours have a new currency. In the US, RR Donnally could do it as long as it was not a Thursday, then 2 or 3 747s would haul them. Then 2 weeks later get a real watermarked set of notes.

If the government has not already printed drachmas, it is malpractice.

[pscot]

3. They must have warehoses full of drachmas

left over from pre-euro days. They can probably reissue those while the create a new currency. Greek banks are seeing heavy withdrawals but seem to be handling them ok.