A Greek departure from eurozone = Developed world action.

Here are some interesting thoughts from the ASB bank with regard to the eurozone crisis situation. Predicted market outcomes as participants become concerned over potential contagion:

* The USD is likely to strengthen further.
* European Central Bank to cut interest rates 50 basis points to 0.50%.
* Bank of England to undertake further Quantitative Easing.
* Federal Reserve to undertake a third round of Quantitative Easing.
* Reserve Bank of Australia cuts rates 100 basis points to 2.75%.
* Reserve Bank of New Zealand cuts rates by up to 50bp to 2%,

Also look at the graphs below especially the one showing the withdrawal of money from trading banks.

2 thoughts on “A Greek departure from eurozone = Developed world action.

  1. Mark Post author

    Yes interesting points. Ireland has been performing well considering the economic climate but one wonders about the withdrawals. Would these be the Irish leaving the country?

    Reply

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