Saturday, May 7, 2011

Secret Meeting to Consider Greek Withdrawal from Euro Zone?

The debt crisis in Greece has taken on a dramatic new twist. Sources with information about the government's actions have informed SPIEGEL ONLINE that Athens is considering withdrawing from the euro zone. The common currency area's finance ministers and representatives of the European Commission are holding a secret crisis meeting in Luxembourg on Friday night.
This could kick off another worldwide credit crisis. I would expect Treasury bonds to do extremely well in such a scenario.

3 comments:

Jmperry said...

How credible do you think this report is? It looks like neither the WSJ nor FT is carrying the story, at least not prominently.

Jmperry said...

If Greece really is threatening to withdraw, it may just be a bluff meant to get them better bailout terms.

CP said...

I don't know. Where there's smoke, there's fire.

It's going to happen eventually, so I wouldn't bet against it happening on any particular weekend.