EconoMeter: Will there be a run on Greek banks?
Is the U.S. immune from any spillover from potential turmoil in Greece?
Roger Showley, SAN DIEGO UNION-TRIBUNE
Friday, May 25, 2012
Kelly Cunningham, National University System
Especially since creditors and investors are already fleeing as credit worsens among Europe’s weaker economies. Similar to not needing to outrun a lion, one only needs to outrun one’s companion. The euro is essentially the weighted average of health in all eurozone countries, reflecting relatively stronger financials of Germany with the tenuous financials of Greece and southern counterparts. Capital flight from those countries already equals about 10 percent of their GDP. Implications for the U.S. are clear, and more evident in California. The stock of eurozone public debt overall is 87 percent of GDP, compared with more than 100 percent in America.