The outcome of the Greece saga is far from clear. Greece leaving the Euro could be the next Lehman moment. For that reason we did knew Greece would not leave the Euro back in 2011 Euro Crisis. For now we are less sure. The current Greece leaders see no future for Greece in the current Euro structure. In their opinion they are left with two option either crash Greece right now or suffocate it more slowly.
A member country leaving the Euro Zone will spell a lot of uncertainty and chaos for financial markets and the European economy at large. All contracts with Greece Government, companies and private persons are denominated in Euro’s. As Greece introduces its own currency it will probably start to issue some kind of IOU’s to pay its employees and contractors. This is a paper claims that promise some future payment. We have seen this strategy in California in 2009.
