Wednesday, May 30, 2012


My one time boss Chris Piss is probably correct that the rich in Greece can shield themselves from the negative effects of a Euro exit.
While poorer Greeks are equally able to appreciate the difficulties facing their country, they’re not as able to shield their funds from an exit from the common currency, Pissarides said. They need to preserve quick access to their savings, which isn’t as easy to do if it’s held at a foreign bank, and such lenders may not always accept small deposits.

“It’s the wealthy who will benefit because that’s who’s able to move their money abroad,” he said. “Wealthy Greeks have already done it, whereas the small saver is not going to do it.”

But it isn't clear that this is a worse path forward for the poor than the imposed austerity. Small savers don't have much wealth to lose.