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To: Kaslin

Grexit would actually benefit Greece in the long run. With return to the Drachma, Greece would boom as a low cost tourist destination. Ordinarily, fuel purchases would be the major issue, but Vlad will probably be willing to subsidize that in exchange for a friend in Europe.

Germany will be hurt by the Exit, as the Euro will increase in value without the drag of Greece. That will cut into German exports. That’s why Merkel has been fighting for a deal, and why the Greeks figured they had her in their pocket. It’s LaGarde that’s been holding the line with the Greeks, for reasons that aren’t entirely clear - perhaps just the old French - German rivalry.


5 posted on 06/28/2015 6:17:55 AM PDT by PAR35
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To: PAR35

I’m not sure the Euro would get stronger as a result of a messy Greek exit as it would make the entire financial system in Europe less stable and predictable.

How much the Euro has already been discounted is anyone’s guess, but I wouldn’t expect it to rise anytime soon after Greece defaults.


45 posted on 06/28/2015 8:37:50 AM PDT by mac_truck (Aide toi et dieu t aidera)
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