Worst-case scenario for US if the Euro fails
It was learned this week that Eursopean finance ministers had drawn up plans to cope with the possibility that Greece votes to leave the Euro – a sign that it is a real possibility. So, what would happen if this were to occur and how bad could it be for the US?
“This would be a financial event unlike anything we’ve seen in the past, and nobody knows whether it would be a major shock, a cataclysmic shock, or something in between,” University of California — Berkeley Professor Barry Eichengreen tells the Atlantic.
This sentiment is shared by European Central Bank member Vitor Constancio, who told CNBC that he could not “imagine a country to leave the euro and survive, for that country in particular [Greece], it would be catastrophic.”