Marshall Auerback — There is no such thing as an ‘orderly’ exit from the Euro Zone

There is no way an exit at the moment could be anything but disorderly. Consider this fact alone: there are $400 trillion in OTC derivatives contracts which reference the euro. They’re all called into question if the currency changes. That won’t do good things to liquidity globally. It will make Lehman seem like child’s play. So they need time, a decent chunk of it, to prepare for contingencies like that. And time is something the European Union does not have on its side right now.

Read it at Pinetree Capital | MacroBits
There is no such thing as an ‘orderly’ exit from the Euro Zone
by Marshall Auerback

(h/t Kevin Fathi via email)