Following up on last week’s cheerful exegesis into the data which is the dropping of the impending European banking and sovereign meltdown, I recommend Dechert’s Euro Crisis Website. It contains a series of Dechert OnPoints and White Papers providing in-depth analysis of the impact of Grexit and the rest on asset managers and other financial players. Shocking but true, it’s now time to say that every financial market participant needs to develop executable contingency plans for the possibility of one or more exits from the Eurozone. (See the very good article "Europe must prepare an emergency plan" by Robert Zoellick in the Financial Times on June 1 about lenders’ need to get ready to “break the glass” on contingency planning.) Maybe some sort of fix, temporary or otherwise, will be embraced at the edge of the precipice to keep Greece in the Eurozone and prevent contagion. Maybe we bump along and somehow oodles of liquidity, a promise of a bit of structural reform and a little growth will let us skate over the broken ice, but I think not. Grexit happens, several other countries will follow Greece out the door and the EU banking system will be profoundly damaged. A deep EU recession will result and international banking functionality will be impaired. (See the article "Banks Park Record Funds with ECB" by Todd Buell in the Wall Street Journal on January 5 on the rapid retreat of the interbank lending market.)Continue Reading The Eurozone: Opportunities During the Impending Troubles