How shock waves will hit US if Greece drops euro | AP

They think the path of a full-blown crisis would start in Greece, quickly move to the rest of Europe and then hit the U.S. Stocks and oil would plunge, the euro would sink against the U.S. dollar, and big banks would suffer losses on complex trades…

  • ACT I.  What would Greece’s exit look like? In the worst case, it starts off messy.
  • ACT II.   Here’s where things get scary.
  • ACT III.  A full-blown crisis would cross the Atlantic through the dense web of contracts, loans and other financial transactions that tie European banks to those in the U.S., experts say...via News from The Associated Press

Banks Build Contingencies for Euro Zone Breakup | NYT

via Banks Build Contingencies for Euro Zone Breakup – NYTimes.com.

“…. On Friday, Standard & Poor’s downgraded Belgium’s credit standing to AA from AA+, saying it might not be able to cut its towering debt load any time soon. Ratings agencies this week cautioned that France could lose its AAA rating if the crisis grew. On Thursday, agencies lowered the ratings of Portugal and Hungary to junk.

While European leaders still say there is no need to draw up a Plan B, some of the world’s biggest banks, and their supervisors, are doing just that…”