According to Wolfgang Münchau in the FT, a Greek default is both necessary and almost a certainty. However, a Grexit is still not assured. It’s a must-read article. Check it out!
via Greek default necessary but Grexit is not – FT.com.
Most critically, it seems that both sides to this negotiation are sleep-walking towards an uncontrolled Grexit.
According to Münchau, there’s not enough hard-negotiating and contingency planning.
Personally, I would expect financial markets to go into free-fall, like 2008, until the central banks, especially the ECB, stomp up eye-watering support. For sure, if Greece takes the Grexit route, it will be decades before the economy of Greece returns to the 2015 GDP level.