http://www.cnbc.com/id/45218531
Between November 18-22, French debt, under Exclusive Analysis' most likely scenario, is downgraded leading to the interbank lending market freezing up with new governments in Greece and Italy “faced down by protestors in their attempts to implement more austerity”....“Increased fear that these economies will default creates bank runs in Greece and Portugal and a downgrade of French sovereign debt from AAA to AA. EFSF is subsequently downgraded to AA+” said the report.
http://www.cnbc.com/id/45186476"Despite this, perceptions about the possibility of the event are already driving markets to an unheard of level," said Bloom.
When the event, whatever it is, does actually happen it will be very bad news for the global economy according to Bloom.
“Were the event to actually occur it would lead to the great depression Mark II,” said Bloom.
This doomsday scenario comes to a head between November 23-26 when Greece leaves the euro to print money and rescue its banking sector. The new currency falls quickly and depositors lose out as their investments are converted into the new local currency.
“The government default on the sovereign debt and the banks default on their foreign debt, which causes a banking crisis across Europe. Italian bond yields rise and exceed 7 percent and the country faces bank runs, in face of which the government freezes deposits and defaults on the sovereign debt”.
