Why Greece Should Stay in the EuroZone

[ag]

The default will lead to a run on the banks anyway.

I mean, the might continue calling it Euro, but the exchange rate of a Greek Euro to the other euros is extremely unlikely to stay 1:1 at this point ))

[ag]

Why, exactly, should the Greek banks be supported in that case? I mean, from the standpoint of the other European countries?

As long as Greece, actually, negotiates what it does, of course all steps should be taken to soften the impact of the measures taken - and that includes trying to make sure Greek banks remain solvent.

On the other hand, if Greeks decide they want to default unilaterally, they are, of course, free to do it, but it would seem natural that they are cut off at that point. Once that happens, any money in Greek bank accounts, even if it is formally denominated in euros, will, in fact, be in Greek euros: there won't be an easy convertibility between the two. Whether they want to call them euros, drachmas, pounds or ducats at that point becomes largely immaterial.  This is the point that should be made very clear to all leading Greek politicians personally and TODAY: at the very least, to make sure they are planning for that contingency (you know, the bank holiday; the emergency distribution of the staples during the transition period, when there is little or no money in circulation: it would be a shame if people can't get bread for a week; the printing and distribution of the new bills, etc., etc. - these things require planning).