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Alongside a wave of regulatory investigations hitting market sentiment this afternoon, former...

Alongside a wave of regulatory investigations hitting market sentiment this afternoon, former Greek PM Papademos tells Dow Jones preparations for Greece exiting the euro are being considered; the risk of leaving is real. Estimates of a cost of €500B-€1T underscore the magnitude of the consequences, he says.
Comments (16)
  • bigazul
    , contributor
    Comments (999) | Send Message
     
    At-least someone in Europe is saying it.
    22 May 2012, 03:43 PM Reply Like
  • thesuer
    , contributor
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    where is the money? Is the EU sponsoring this brilliant idea?
    22 May 2012, 03:52 PM Reply Like
  • bigazul
    , contributor
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    He has been hushed now...
    22 May 2012, 09:05 PM Reply Like
  • Humble Value Miner
    , contributor
    Comments (426) | Send Message
     
    where's the news? with a Greek exit, Europe will actually save money. If Papademos estimates 1T loss, this is just another proof he is a bad economist (if you need other proofs - remember it was at the helm when Greece sinked)
    22 May 2012, 03:56 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1528) | Send Message
     
    "Estimates of a cost of €500B-€1T underscore the magnitude of the consequences, he says." -- context: he is actually pro-EU, pro-stay-in-the-Euro. The 1T estimate is by the ECB, and is the loss to the EU, not to Greece. BTW I think Greece is better off defaulting, and then making up its losses--much less than 1T--over a number of years from their biggest "export"--the tourist sector, which is 20% of their GDP. Unfortunately the only political party that agrees with me at the moment is the Greek Communist Party (KKE).
    22 May 2012, 09:04 PM Reply Like
  • Dogpound
    , contributor
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    That should accelerate the run on their banks.
    22 May 2012, 03:57 PM Reply Like
  • untrusting investor
    , contributor
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    Yep runs on Greek, Portugal, Spanish, and Italian banks should start to increase week by week now.
    22 May 2012, 05:44 PM Reply Like
  • Ray Lopez
    , contributor
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    Pretty much. I'm scheduling a withdraw of my last vestiges of my Greek bank account holdings just before the June 17 elections.
    22 May 2012, 09:06 PM Reply Like
  • pat50
    , contributor
    Comments (44) | Send Message
     
    If the EU can hold up other club meds-then clamp screws on Greece--Greek exit will be a positive. But those are ifs-and we r scared blind mice.
    22 May 2012, 04:06 PM Reply Like
  • thesuer
    , contributor
    Comments (271) | Send Message
     
    if Greece exits then portugal, Spain and Italy are next in line.....everyone stays at the party especially if Germany is paying for it..
    22 May 2012, 04:35 PM Reply Like
  • enigmaman
    , contributor
    Comments (2686) | Send Message
     
    Maybe just maybe they are playing chicken with the EU, its one of the only cards they have left in there hand that carries any weight, but on the other hand the markets just might rally if their bluff is called because Greece is an expensive paper weight to the EU.
    22 May 2012, 04:39 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    The media is spinning a Greek exit as a disaster - I see it as the opposite. They need to be on their own, inflating away their future and making deals based on that landscape. Let'm go!

     

    And no, I don't think Spain, Italy or even Portugal are next, however, the Spanish banking situation is quite tenuous and the EU will have to deal with that.
    22 May 2012, 06:13 PM Reply Like
  • bigazul
    , contributor
    Comments (999) | Send Message
     
    Agreed whitehawk, if the other countries play ball. The Euro will rally.
    22 May 2012, 06:23 PM Reply Like
  • Van Hyder
    , contributor
    Comments (168) | Send Message
     
    I keep reading that CBs are the buyers of US long treasuries, if that's true wouldn't the ECB need to liquidate to replaced funds if there are large bank runs? And one more thing, the cost estimate by Papadamos is 500B-1T, seriously who gets to estimate using a 50% variance? That's like saying WTI will be between $50-$100/barrel at some point in the future. It's all a joke.
    22 May 2012, 11:52 PM Reply Like
  • lostagain
    , contributor
    Comments (36) | Send Message
     
    Whenever my politicians speak I get deeper and deeper in the hole. I wish I could stay off the news and I will be fine
    23 May 2012, 01:19 AM Reply Like
  • thesuer
    , contributor
    Comments (271) | Send Message
     
    I have a "real life" dream- short the Euro and Gold go long long dollar until the DJIA/S&P fall 10% and then the Central banks starts QE3 then buy gold. Start buying all the undervalued German companies that are trading almost at their beginning of the year lows.

     

    Eur/USD- target 1.10-1.15 end of the year.

     

    Greece, Spain stay in the EU as our "Bahamas" (discounted) travel paradise for all EU citizens ( i.e. all the islands belong to the ECB), all the Spanish unemployed migrate to Greece and other islands (Mallorca, Ibiza, and start a revolution that Germany finances through its huge increase in exports due to deflated Euro we all eat tapas, enchiladas, salsiki, gyros and drink sangria, Ouzo in the new EU region called "SPAECE", enjoying the Mediterranean sun.
    23 May 2012, 06:39 AM Reply Like
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