Bloomberg has published an article disputing the belief that the Greek crisis will be contained and not spread within the Eurozone, while drawing parallels with the Lehman Brothers collapse in 2008, when the US Secretary of the Treasury and the Federal Reserve also appeared confident.
Although the belief that a Greek default will not have a significant impact on the other Eurozone members is gaining momentum, the article points out that the repercussions could be far greater than expected, with some claiming that in this case Europe will have committed an even greater calculation mistake than when creating the euro.
The article stresses that the European economy is still fragile and that the last thing it needs is a shock like a Grexit. Should Greece be allowed to default and be expelled from the Eurozone, the markets will be aware that countries without a sustainable debt may be expelled from the single currency system.
