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9 Feb 2015
More on a Grexit - BBH
FXStreet (Guatemala) - Most observers weighing in on the issue of Greece have emphasized economic and financial linkages.
Key Quotes:
"The official creditors suggest that Europe is better positioned for a Greek exit. The banks are stronger. There are backstops, like ESM and OMT in place. At the same time, Greece's primary budget surplus means that it is not borrowing any longer for domestic purposes. It is only borrowing money to services its existing stock of debt."
"Such economic determinism does not do the situation justice, and, in fact, leaves policy makers and investors vulnerable to unintended but not unforeseeable consequences of a Grexit. One need not go as far as positing Greece leasing ports and/or other facilities to Russia."
"The simple neutralizing of a NATO asset would itself alter the balance of power in the region. Greece is one of the few EMU countries that meet its NATO commitment for military spending, and as we have previously noted, it is an important customer of German and French armament dealers. It is also one of the sources of its debt."
Key Quotes:
"The official creditors suggest that Europe is better positioned for a Greek exit. The banks are stronger. There are backstops, like ESM and OMT in place. At the same time, Greece's primary budget surplus means that it is not borrowing any longer for domestic purposes. It is only borrowing money to services its existing stock of debt."
"Such economic determinism does not do the situation justice, and, in fact, leaves policy makers and investors vulnerable to unintended but not unforeseeable consequences of a Grexit. One need not go as far as positing Greece leasing ports and/or other facilities to Russia."
"The simple neutralizing of a NATO asset would itself alter the balance of power in the region. Greece is one of the few EMU countries that meet its NATO commitment for military spending, and as we have previously noted, it is an important customer of German and French armament dealers. It is also one of the sources of its debt."