EDITOR: We did a quick Google search to try to learn more about the potential results for the world economy from a Greek default on their debt and possible exit from the euro zone. The below CNN article of October 18 was the best we could find. There are some helpful links that provide additional insights. We will keep looking for a more in depth and learned discussion and, as always, will welcome input from our readers.
CNN: …There have been numerous grim predictions. Most doomsday scenarios see global panic and market sell-offs. A default might mean French and German banks exposed to the debt will begin to struggle, resulting in a credit lockdown by the wider banking sector.
If banks are forced to take this hit, it could have global economic consequences similar to those seen in the financial crisis that followed the collapse of Lehman Brothers in 2008.
Investors would also begin looking at which other countries are facing financial difficulties, including Italy and Spain. If investors stop supporting these countries, the eurozone’s stronger countries could again be leaned on for financial assistance… (more)
