My only reaction to the Wall Street Journal headline is, “What else is new?” Maybe the editor was thinking the same thing, only can’t say it? As I read the tweets of the mainstream journalists on Twitter, it is clear that they are personally far more cynical then their work for “The Man” reflects. But I think that they are probably dissing Hacker Murdoch, not to mention the pathetic shills they deal with day in and day out, behind their backs. Old Rupie the Hacker is too busy with his mushrooming coverup, and the shills are too self absorbed, to notice.
Economic computer models typically depend on the past to forecast the future. The possibility of Greece leaving the euro zone is an exception to the rule because no nation has exited before.
Certainly, the Greek and European economies would take a big hit. But the impact from the unprecedented event on the U.S. economy is harder to quantify. Economists are depending on instinct rather than regressions.
U.S. exports would take a hit, say economists. The current recession in Europe hasn’t yet curtailed demand across the pond for U.S.-made goods, but look for declines later in the year.
The most immediate impact would be seen in the financial markets. Until the dust settles, investors would be likely to seek safe assets.