17 Jun 2015
Greece stalemate continues – Rabobank
FXStreet (Barcelona) - The Rabobank Team shares the key developments surrounding the Greece negotiations and risks of ‘Grexit’.
Key Quotes
“..the Greece situation continued to deteriorate (Athens shares -4.8% on the day and now back at their September 2012 level) to the extent that there is now discussion not about today’s bi-weekly ECB decision on Greek ELA, or Thursday’s Eurogroup meeting, but of an emergency EU summit on Sunday. A potential weekend ‘resolution’ to the Greece issue, which is probably not the same thing as an actual agreement, amid growing chatter of capital controls, will smack uncomfortably of the 2008 Lehman experience – which was not a happy episode for financial markets to put it mildly.”
“…the belief in other circles that Grexit, while regrettable, would be a containable event, is also not something we should want to place too much certainty on given there is no precise historical parallel: note the front page of the FT today warns of the potential damage Grexit could do by stating “Divorce in haste, repent at leisure”.”
Key Quotes
“..the Greece situation continued to deteriorate (Athens shares -4.8% on the day and now back at their September 2012 level) to the extent that there is now discussion not about today’s bi-weekly ECB decision on Greek ELA, or Thursday’s Eurogroup meeting, but of an emergency EU summit on Sunday. A potential weekend ‘resolution’ to the Greece issue, which is probably not the same thing as an actual agreement, amid growing chatter of capital controls, will smack uncomfortably of the 2008 Lehman experience – which was not a happy episode for financial markets to put it mildly.”
“…the belief in other circles that Grexit, while regrettable, would be a containable event, is also not something we should want to place too much certainty on given there is no precise historical parallel: note the front page of the FT today warns of the potential damage Grexit could do by stating “Divorce in haste, repent at leisure”.”