Sunday, June 24, 2012

The Cost of Greece Exiting the Euro

The exit of Greece from the Euro will have a negative financial and economic impact according to the article What would a Greek exit mean for the U.S. economy?  Here is my take on some of the estimated impacts:

  • Private debt default -  $70,000,000,000

  • Public debt default - $460,000,000,000

  • U.S. GDP reduction  - 0.3%

  • Value of $1 - 1,000 Drachma at a minimum

  • Demonstrating again that Keynesian economics doesn't work - Priceless

  • It will be interesting watching whether Greece will eventually exit the Euro despite current claims of not wanting to do so.   I just don't see any possibility of Greece addressing its debt situation another way, despite people with much more authority than me claiming otherwise.

    For more on New Beginnings, check back every Sunday for a new segment.

    This is not financial advice. Please consult a professional advisor.

    Copyright © 2012 Achievement Catalyst, LLC

    1 comment:

    Anonymous said...

    How does this disprove Keynesian economics?