- IIF document says hard default in Greece would lead to sizeable bank recapitalization costs, could easily be 160 bln euros
- Default would hit ECB, Portugal, Ireland, Spain and Italy would also likely need support
- “Hard to see” how contingent liabilities would not exceed 1 trillion euros
Well there’s our first tape bomb. EUR/USD down through 1.3200, presently at 1.3188.
Guess the IIF trying to concentrate a few minds as to what lies in store if/when Greece defaults.