KALAMAZOO (WKZO) — One local expert says she doubts the rest of the world has much to fear from a Greek default, or even if they get kicked out of the European Union and lose use of the Euro.
Dr. Devrim Yaman says they only represent a fraction of the world’s economy, and just a few percent of the E.U. She says there is no doubt that if that country doesn’t clean up their act soon, the World’s oldest Democracy will suffer and suffer greatly.
Dr. Devrim Yaman is the Chair of the WMU Dept. of Finance and Commercial Law.
She says 4-years ago it would have been a different story with Europe in a recession and the U.S. recovery still struggling.
They were eager then to bail them out to keep the financial failure from spreading, but now…not so much. Its a different world.
Since then the debt has shifted from private banks to the other members of the European Union.
Several countries that were also in financial crisis have since taken the steps required to improve their debt situations and are less vulnerable to a domino effect.
The Greeks vote Sunday on whether to accept new austerity measures or gamble on getting a bail-out from the rest of Europe, a bailout that may not be coming this time.
