Greece is leaving the Eurozone. Follow the logic:
Greece leaves the Eurozone, defaults on all debt and issues a new Drachma after
The newly elected Syriza government tells Germany they will not accept any conditions on their sovereignty after
The people elect a Communist government whose platform is non-austerity after
The people convert all of their wealth to Euros in anticipation of their county’s economic collapse by their own actions.
Does anyone expect the Greek people to vote for fiscal responsibility? I wonder where the Euros are coming from to support this Greek bank run? The impact of this action will become part of the contagion spreading throughout Southern Europe. The impact on the United States will depend on how much our treasure Ben Bernanke will send to the ECB and the IMF. The end result here will be the same, only the time frame will be impacted.
Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election on Sunday that many fear will result in the country being forced out of the euro.
Bankers said up to 800 million euros ($1 billion) were leaving major banks daily and retailers said some of the money was being used to buy pasta and canned goods, as fears of returning to the drachma were fanned by rumors that a radical leftist leader may win the election.
The last published opinion polls showed the conservative New Democracy party, which backs the 130 billion euro ($160 billion) bailout that is keeping Greece afloat, running neck and neck with the leftist Syriza party, which wants to cancel the rescue deal.
As the election approaches, publishing polls is now legally banned and in the ensuing information vacuum, party officials have been leaking contradictory “secret polls”.
On Tuesday, one rumor making the rounds was that Syriza was leading by a wide margin.