Europe prepares for a Greek exit
Reuters reports that the Euro zone has discussed means to control capital if the worst-case scenario – an exit of the zone by Greece – develops, including limiting the amount of money that can be withdrawn from ATMs.
According to Reuters’ sources, the contingency plans extend to considering “limited cash withdrawals from ATMs and limited movement of capital have been considered and analysed.”
Renewed fears that Greece will decide to leave the Euro zone following elections on Sunday put a damper on any market gains resulting from Spain’s acceptance of a $100 billion-plus bailout.
Analysts nay spend the next week debating whether an exit would be “catastrophic,” yet few would disagree this week will be rough on investors and businesses as uncertainty looms.
And as bad as things appear in Europe, the situation does not look much better in the US after the Federal Reserve released data showing that the average family lost 40 percent of its wealth during the recession.