The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Abigail on Grexit

As if Dimon’s fall from grace wasn’t bad enough, markets are also battling with Grexit demons. ‘Grexit’ is a new word that has entered the financial lexicon along with ‘financial repression’ and ‘the great recession’.

It refers to the possibility of Greece exiting the euro. Greece is on a slippery slope to hell, otherwise known as abandoning a currency peg: think Argentina in 2002. European politicians have waffled and dithered but failed to deliver a workable solution. And now the people and the markets will have it their own way. Nouriel Roubini, the renowned bearish economist, has talked of the euro being a "slow-motion train wreck".

I recently had lunch with an intelligent banker who had an interesting perspective on Grexit. "There could be a military coup in Greece," the banker ruminated. "Remember the country had a military junta in the 1970s. The more civil unrest and political ineptitude you see in Greece, the more likely a coup is. Then the military will leave the euro, devalue the drachma and there will be a difficult few months for the Greeks. However, eventually, Greece will be so cheap that we will all want to buy holiday homes there, the construction industry will boom and the economy will revive.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?