Analysis: Euro exit talk risks self-fulfilling prophecy
(Reuters) - To understand the impact of a potential Greek exit from the euro zone, imagine an operating theatre inside a betting shop.
As surgeons prepare to amputate a gangrened foot to prevent infection spreading to healthier parts of the body, gamblers on the sidelines lay bets on which limb will be next for the chop.
Talk of a possible Greek exit has already sapped investors' confidence in the 17-nation single currency area and contributed to higher borrowing costs for Spain and Italy. It is making a planned return to market funding next year harder for Ireland and Portugal, which are implementing tough bailout programmes.
Some European politicians and central bankers clearly see jettisoning a delinquent member as a salutary lesson to others not to abuse club privileges. Like the English in Voltaire's philosophical novel Candide, they believe "it's a good thing to execute an admiral from time to time, to encourage the others".
http://uk.reuters.com/article/2012/07/23/uk-eurozone-exit-idUKBRE86M04H20120723
