A big fat Greek divorce

POLITICAL UNCERTAINTY COST AMERICA 2.4 MILLION JOBS
Uncertainty is costly. More than at any point in recent history, the global economy’s fate is tied to the capriciousness of policymakers. How much does such uncertainty cost?

The graph above shows how the stockmarket (red line) and the level of uncertainty (blue line) move in tandem.

Anecdotal evidence suggests that uncertainty costs a lot, also. Uncertainty over the world economy has frozen everyone. Many people have simply stopped paying their bills, hoarding cash as they wait to see what unfolds. “I have plenty of customers with enough deposits to meet their bills who choose not to pay,” says one banker, before admitting that he is holding off on his kids’ private-school fees just in case.

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