Greece is making plans to withdraw from the euro and reactivate the drachma, as reported by The Telegraph (U.K.). Hat tip to Drudge Report for the link. This announcement raises interesting questions.
Is Greece (a) bluffing a pullout to get the ECB and its creditors to blink, (b) serious about exiting the euro zone, or (c) trying (a) with (b) as a backup plan if (a) isn't successful in getting more generous terms? It appears we'll know the answer soon.
By doing this openly - an unusual choice - Greece risks a run on their banks as people withdraw their strong euros before they can transmute into weak drachmas. I'll bet the mattresses of Athens now hold a lot of euros.
