I am here today to speak about an article called ,, Greece and the euro Exodus, chapter 1,,.

I have chosed to present this article as it is an very current issue and people must be aware of the damage that crisis caused on Greece. The article begins by presenting an very likely to be script: the Greece exit from euro zone., which could be possible due to a new government election. The biggest problem in Greece is not the withdrawal cash, but the money transfer abroad, because most of the people are feeling insecure about their future, so they are moving their assets in safety places, banks. The article is outlining an issue of concern which should have been taken into account from the begginig: the greek banking system has lost almost a third of his deposits over the past two years, which is causing a financial instability. The president is been quoted and it is said that somewhere around 700milion euros have been withdrawed from bank due to safety issues until 14 of May. But this is far from finish: more and more people are moving their money and assets abroad being afraid of bankruptcy trying to save what they can. Furthermore, it is raised another problem: what if the withdraw mood will be spread to another areas such as Portugal and Spain? Most economical analysts are concerned about this problem as it is seen more often how countries like Britain, for example, is sweeping money out from countries in danger. As a matter of fact, greek government is trying to restore the confidence and the safety created by cash deposits, by pumping 48 bilion euros in new capital. Still, it remains the question if after the elections, the new government will be able to keep the austerity measures, because if not, the whole Europe will have to suffer. It is said that the cost for Greeces exit is still large, but thats not the main problem. The Greek central bank is owning over 100 bilion euros to others central banks of EU, so the taxplayers would be a nighmare. Moreover, Greece exist would affect the entire Europe, because there are still greek companies that owe to various European ones a large amount of money. The biggest risk considered by many analysts is the spread of the financial contagion. As it may be seen, Cyprus is being at risk, as his banking system is interwined with Greeces, so Cypriot banks could loose up to 50% of their GDP( Gross Domestic Product). To conclude with, its been two years from when Greeces crisis has appeared and still there are many debates on Greeks exit to be a beneft or not! Moreover, the real worry is the financial contagion not to be spread.