Lovely that we’ve gotten to this point…anyway, a quickie from a larger Fortune Magazine article on what might happen in the event of Greek default (we’re going to hear from the Greek PM along with Merkozy at some point tomorrow in a joint statement btw)…
A run on the Greek banking sector would result bringing economic activity in the country to a grinding halt. Imported products would be in short supply, creating serious political and social unrest throughout the country. The ensuing collapse in the Greek banking system would send shockwaves throughout Europe. Goldman Sachs (GS) estimates that banks in the peripheral eurozone would be hit the hardest, resulting in 38 banks requiring between 30 billion and 92 billion euros. Citigroup (C) estimates that losses in Greece, Ireland, Portugal and Spain would trigger direct and indirect losses of $480 billion.
That’s it? No biggie. What’s half a trillion bucks between Euro friends?