Tag Archives: UBS

What The First 100 Days After Brexit Would Look Like | Zero Hedge

June 16, 2016 By in Brexit, Business Administration, David Cameron, Defense Policy, Economics, Euro Crisis, Foreign Policy, French election, Growth, Immigration, People, Politics Tags: , , , , , , , , , Leave a comment
ECB Hazard Very Toxic Symbol

ECB Hazard Very Toxic Symbol (Photo credit: Wikipedia)

Zero Hedge looks at post Brexit crisis management. It argues that before dawn on June 24, if an exit vote becomes clear, the EU’s top brass from Berlin to Brussels will be forced into damage control. It suggests that in echoes of the Greek debt crisis, euro-area finance ministers may hold an emergency meeting as soon as that evening. It concludes that wild swings in the pound, more aggressive interventions by the Swiss National Bank and a ratcheting up of global instability rank as likely market reactions.

Source: What The First 100 Days After Brexit Would Look Like | Zero Hedge

Elsewhere in the news the French Republican Party is signalling that the ultimate failure for the EU would be to let the UK leave and invite Turkey instead.

There is still room for Europe’s politicians to make last minute concessions to the UK. Will we see Angela Merkel riding in on a white horse coming to David Cameron‘s rescue?

 

Greek default necessary but Grexit is not -Wolfgang Münchau – FT.com

April 20, 2015 By in Austerity, Business Administration, Central banks, Euro Crisis, Fiscal Policy, Greece, Growth, People, Politics Tags: , , , , , , , , , Leave a comment
The entrance of Bank of Greece.

The entrance of Bank of Greece. (Photo credit: Wikipedia)

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.

Thoughts?