By John Galt
June 23, 2011
Per the New York Times this morning the answer appears to be “yes” and could create even more headaches as the derivatives nightmare expands and is analyzed with all of the PIIGS nations. If the maximum exposure of just over $78.7 billion for Greece is all that is at risk, then it does not appear to be a major crisis as the U.S. could print that away with the ECB in nothing flat. However, if there are more in non-bank entities and other companies with exposure that have not been recorded then the law of unintended consequences such as what happened when Bear Stearns or Lehman collapsed could occur.
Make sure you check this article out at the New York Times this morning as it is a must read and a hint as to the crisis about to explode on to the scene:
Derivatives Cloud the Possible Fallout From a Greek Default
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