I confess to having trouble getting my head around just what it will mean if – or perhaps that should be when – Greece and any other of Europe’s embattled economies defaults on its debts. But when I hear the so-called financial experts start talking about another “Lehmanesque moment” I get concerned. Europe might be a long way from Australia, benefiting as it is from Chinese growth, but an international banking crisis soon affects everyone.
The best survey of what sovereign default is and what it might lead to that I have come across appeared last year on Calculated Risk which is high up on the list of my daily must read websites. Here are the links to a series that will let you share my concern.
Part 5C. Some Policy Options, Good and Bad