One of my former macro professors is a coauthor of an Op-Ed in the Wall Street Journal about Greece leaving the Euro. Basically it’s a very bad idea with far-reaching consequences. This is one of those rare moments when you can foresee something really terrible about to happen and yet do very little to stop it. We’ll see what Sunday brings.
My favorite bit was the conclusion, explaining how uncertainty can have damaging effects (many that we can’t foresee):
As long as Greece leaves the door open to the disastrous consequences of exiting the euro, the rest of the currency zone will have to deal with the contagion in Spanish, Italian and other bond markets and banks, through direct intervention by the ECB. Like the Lehman collapse, there may be a number of markets severely affected by a Greek exit that are not immediately obvious. Delay in dealing with these problems, or denial that they exist at all, will only make the fallout more expensive.