“Global financial systems will be doomed to repeat the 2008 financial crisis if policymakers fail to tackle the European debt crisis now, says Robert Zoellick, outgoing President of the World Bank.
The 2008 collapse of Lehman Brothers sparked a worldwide financial crisis, and a messy Greek exit from the eurozone could pressure larger countries to follow the same path, which would involve large-scale defaults that would rattle markets in Europe and elsewhere.
“Events in Greece could trigger financial fright in Spain, Italy and across the eurozone. The summer of 2012 offers an eerie echo of 2008,” Zoellick says, according to The Daily Mail.
“If Greece leaves the eurozone, the contagion is impossible to predict, just as Lehman had unexpected consequences.”
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