The proponents of a euro-zone exit for Greece grossly underestimate its devastating consequences.
Many investors worry there are likely to be more losses to come amid worries about possible contagion should Greece exit the euro zone.
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The deal between Cyprus and its creditors dampened market speculation that the country could be the first to exit the Euro Zone, which triggered a mild unwind of some of the recent safe-haven bid seen into gold prices.
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Europe will remain in recession for most of the year, ultimately forcing a Greek exit from the currency zone.
"It's not that we have won a battle, but we really avoided a disastrous exit from the euro zone, " said Michalis Sarris, the Cypriot finance minister.
On Wednesday, Greek conservative leader Antonis Samaras was sworn in as prime minister at the head of a pro-austerity government, reducing the chances for a Greek exit from the euro zone.
Meanwhile, a Greek exit from the currency zone could still come at any time, with Citigroup recently placing the odds of such an event at 90 percent over the next 12-18 months.
Germany's borrowing costs fell to fresh record lows at an auction Wednesday as the prospect of new elections in Greece and the cash-strapped country's possible exit from the euro zone sparked an investor flight to safety.
Perhaps the politicians will be shocked into action, by a euro-zone bank run, a chaotic Greek exit, or flight from Italian government debt.
So the debates are back on as to whether Greece will remain in the euro-zone, will be booted out, or should exit on its own, and what the result of each scenario would likely be.
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One way of stopping that, says my market interlocutor, is if the Eurozone authorities would issue pan-European depositor insurance, effectively saying to everybody, everywhere in the zone, that the other members would make good bank deposits in the event of exit, or capital controls etc.
The euro would survive the exit of Greece - the European Union existed before the euro and no doubt would survive a contraction the euro-zone.
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