European leaders and market analysts are starting to forecast the results of a Greek exit from the Eurozone and the projections don't look good.
On Monday, Greece's political leaders failed to form a coalition government, boosting fears of a swift exit from the Eurozone. Now, Bloomberg's Patrick Donahue reports that European Central Bank policymakers gathered in Paris to weigh the possible outcomes of a Greek exit. Meanwhile, global market analysts are feeding the international press their best guesses. Unfortunately for Greece (and the EU) many of the predictions are nightmarish. Here's what analysts say will come of a Greece exit from the Euro :
Interest rates skyrocket Michael Arghyrou, senior economics lecturer at Cardiff Business School, has bad news for Greeks in need of a loan. "Interest rates will have to double and all mortgages, business loans and other borrowing will become much more expensive," he says. "There will be no credit for Greek banks or the Greek state. That could mean a shortage of basic commodities, like oil or medicine or even foodstuffs." Of course, that's not even the worst of it. "The worst case scenario would be a social and economic breakdown, perhaps even leading to a totalitarian regime," he says.