Is This It? Implications of Greece Leaving the Eurozone

Major debt restructuring for both Cyprus and Greece will probably force the struggling euro zone countries to leave the single currency, according to Citigroup's latest economic outlook, which warned markets could again be hit by escalating fears.

Megan Greene has a great column on Cyprus and the euro today. In short, there are costs and benefits to leaving the euro — but the costs are going to be borne anyway, which means that at the margin, devaluation is likely to be good for the country.

Those looking for a bit of humor in the European debacle can find it in statements from Jean-Claude Juncker, head of the eurozone finance ministers. Juncker says "I don’t envisage, not even for one second, Greece leaving the euro area. This is nonsense. This is propaganda. We have to respect Greek democracy." Bear in mind this statement comes from the same man who said "When it becomes serious, you have to lie."

It is possible if not likely we have to suffer through at least 11 more Groundhog days as Greece sets March 8 deadline for investors in bond swap. Greece has set a March 8 deadline for investors to participate in its unprecedented bond swap aimed at sharply reducing its debt burden, according to a document outlining the offer.

SINCE Greek Prime Minister George Papandreou declared his intention to hold a referendum in his country on the recently negotiated rescue plan, the situation in Athens has been somewhat volatile.

IPE at UNC submits: By Kindred Winecoff First, the ECB is quarreling with Berlin: The cold war between Berlin and Frankfurt reached a new high last week. Should Germany implement its plans, the ECB would have to cut off funding for Greece, the monetary watchdogs warned. The consequences for Europe's banks and the Greek economy would be devastating.

IPE at UNC submits: By Kindred Winecoff