European Businesses Prepare For Greek Unrest and Euro Exit

[mcurrier]

http://www.cnbc.com/id/47588146

British electrical retailer Dixons has spent the last few weeks stockpiling security shutters to protect its nearly 100 stores across Greece in case of riot.

The planning, says Dixons chief Sebastian James, may look alarmist but it's good to be prepared.

Dixons, using its experience of dealing with riots in London and other British cities last summer - big flat-screen televisions were the looters' booty of choice - has ordered enough shutters to protect its stores and is working with the Greek police and security groups.

It also has contingency plans to move customers to other destinations if civil unrest does break out, similar to measures it put into place last year following turmoil in North Africa during the Arab Spring revolutions.

[MacGyver]

Greece exiting the Euro bloc will immediately trigger liquidity events in Portugal, Ireland, Italy and possibly Spain. It'll make Lehman Brothers look like a Sunday picnic.

I would expect a shooting fight to start shortly thereafter. It may ironically be Germany vs. everyone else when they take their toys and go home.

[Guest 6.8 AR]

That's just what I was afraid to admit to myself, MacGyver. And we will get involved, won't we? When that happens, we will be having

the same problem over here, in short time.

[MacGyver]

In all reality, we're already probably in the beginning stages of it, everyone is just purposefully ignoring the gorilla in the corner hoping he'll just go away.

All kinds of European banks are seeing their bond yeilds go through the roof. It's costing several Euro bloc countries almost double digit percentages to borrow money. That's a good indicator that things are about to get bad. All this talk about issuing Euro bonds is like extending credit to a bankrupt crack whore. Any rational observer can predict what's going to happen next.

You're right, though. It isn't like this is an isolated problem over on the continent. Our own Fed cites displeasure and confusion about bond yields here responding with behavior that is opposite of what they expect. QE2 happened precisely because QE1 didn't work. They would have already done a QE3, except they were fearful of being lynched at the hands of an angry public. We're not far behind.

Our world economy has been hijacked by financiers who will drive us straight to the gates of hell. All the while, we'll consume American Idol while our bought off politicians argue about gays marrying each other and the color of the drapes.

Edited May 30, 2012 by MacGyver

[Guest 6.8 AR]

I doubt it will leave anyone untouched

the way the economy is so global.

Old Atlas is gonna shrug soon.

Man, I hate what our kids are getting.

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