The once-unthinkable event- Greece’s exit from the Eurozone – may happen as early as this weekend.
The signs are not good, governments have begun to game plan a Greek exit, money is flying to safe havens, such as U.S. Treasuries, and Greeks are emptying their (currently) Euro-based accounts in preparation.
With Germany’s staunch refusal to issue Eurobonds, no plans being developed by the EU to save Greece, and the increasing popularity of the anti-austerity party in Greece (Syriza), it appears that Greece’s fate is sealed.
Any withdrawal (or expulsion) of Greece from the Eurozone would have be done over a weekend, where only a 46-hour window of opportunity exists, from the close of trading on Friday and the opening of trading on Monday.
The potential for chaos remains huge, but the growing hope within the Eurozone is that Greece’s exit will be manageable over a few weeks and leave the Eurozone stronger at the end.
With Greece headed back to their drachma, the EU would then be able to devote their resources to protecting the other weak, heavily indebted countries, such as Spain.
The risk of course is that the speculators would simply switch their attention to the next countries in line and begin betting against them and raising their costs of borrowing.
Watch this weekend very carefully and hang on to your hats. If Greece exits, it will be a weekend unlike any we have seen.