04-28-2015, 11:22 AM
UBS' Donovan said any contagion from a Grexit would come from the banking system. He said that if Greece did leave the euro area, any money in Greek banks would be redenominated into a new currency, which would probably plunge in value, distressing depositors. Depositors in other countries may think their holdings are safe, since their country is not going to leave the euro zone--or they may decide to avoid any risk and withdraw their savings, Donovan said.
Greek contagion risks may be higher than you think
German Finance Minister Wolfgang Schaeuble hinted on Saturday that Berlin was preparing for a possible Greek default, drawing a parallel with the secrecy of German reunification plans in 1989. At a briefing with reporters after a tense meeting of euro zone finance ministers on Greece on Friday, Schaeuble was asked if euro zone finance ministers were working on a "Plan B" in case negotiations on funding with cash-strapped Athens fail. "You shouldn't ask responsible politicians about alternatives," Schaeuble answered, adding one only need to use one's imagination to envisage what could happen.
Germany hints at preparations of a Plan B on Greece - Yahoo Finance
There's a new theory doing the rounds in the "Grexit or no Grexit" debate. Unlike the widely-held conjecture that a default would lead inexorably to Greece's ejection from the eurozone, analysts and economists now think there are a number of ways the debt-addled country can retain its membership of the euro while stiffing its international lenders.
Greece's grand plan: default and stay in the euro - Telegraph