Greek Default Could Tip US Into Recession

RSS Feed

Greek Default Could Tip US Into Recession

September 20th, 2011

FAKE NEWS for the Zionist agenda

John Melloy
CNBC
Sept 20, 2011

Despite being more than 5,000 miles from Washington D.C., a default in Athens could trip up the global banking system just enough to tip the U.S. into a recession, investors and economists said.

“Due to financial trading relationships and off-balance sheet exposure to European banks, the U.S. banking system will not go unscathed,” said Michelle Meyer, a Bank of America Merrill Lynch economist, in a note to clients Friday. “If the crisis in Europe escalates, it could be the shock that pushes the U.S. economy into recession.

While this is not the base case predicted by Bank of America, the firm does still prepare its clients for this possibility by laying out how the Greece crisis could quickly become a “Lehman event.” After all, a 50 percent haircut on Greek sovereign debt would mean a very manageable $60 billion, or just two percent, of total bank foreign claims for U.S. banks, according to the report. But that’s just director exposure.

There are five major ways the U.S. is connected: trading counterparty risk and derivative ownership with heavily-exposed European banks, overall market confidence, central bank funding, money-market funds and trade flows.

Full article here

Print this page.

Comment Rules

2 Responses to “Greek Default Could Tip US Into Recession”

Could? I suspect we will get millions more homeless from this. I will profit big time from it and use the money to set up a command center to start the planned armed overthrow of the current filth that runs our government.

anon Reply:
September 20th, 2011 at 4:01 am

If you weren’t on a list before you are now.