"A major shock, a cataclysmic shock, or something in between"
Spain's bailout was a failure - an abject flop that was supposed to buy Spain's credibility, but instead bought only four hours of peace before investors continued to panic.
And perhaps Americans should start panicking too. It seems at least plausible now that the euro zone's leaders will bumble their way into the worst-case scenario, where a destitute Spain or Italy finally chooses to leave the currency union, leading to its inevitable breakup. The economic carnage could easily drag our fragile economy down too."This would be a financial event unlike anything we've seen in the past, and nobody knows whether it would be a major shock, a cataclysmic shock, or something in between," University of California -- Berkeley Professor Barry Eichengreen told me. How bad could things get? Here is your worst-case scenario guide.
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