source: Wells Fargo
"Greece faces a watershed election on June 17. If a governing coalition emerges that would renege on previous governments’ promised austerity measures, the country’s creditors would likely withhold further monies from the Hellenic Republic. Default and likely abandonment of the euro probably would follow.... Greek default and abandonment of the euro should not have a marked effect on the global economy as long as its fallout can be confined to the Hellenic Republic. However, we are not convinced that the fallout can be so easily contained. Expectations of more exits from the Eurozone would ramp up significantly, and further abandonments of the euro could become self-fulfilling prophecies. In our next report, we will analyze the global implications of more countries abandoning the euro." Jay Bryson, Global Economist, Tim Quinlan, Economist and Kaylyn Swankoski, Economic Analyst at Wells Fargo.
"Greece faces a watershed election on June 17. If a governing coalition emerges that would renege on previous governments’ promised austerity measures, the country’s creditors would likely withhold further monies from the Hellenic Republic. Default and likely abandonment of the euro probably would follow.... Greek default and abandonment of the euro should not have a marked effect on the global economy as long as its fallout can be confined to the Hellenic Republic. However, we are not convinced that the fallout can be so easily contained. Expectations of more exits from the Eurozone would ramp up significantly, and further abandonments of the euro could become self-fulfilling prophecies. In our next report, we will analyze the global implications of more countries abandoning the euro." Jay Bryson, Global Economist, Tim Quinlan, Economist and Kaylyn Swankoski, Economic Analyst at Wells Fargo.
