How does one prepare for sovereign default ? (eurozone in mind)
Here is a call for ideas and suggestions that I kindly ask the CM audience for.
I live in Greece, and the articles about possible sovereign default in the international press come a dime a dozen these days.
I see two different endings to this story:
– Greece leaves the eurozone and devalues its currency, as used to do before the EMU era.
– Extreme austerity is imposed to us in order to remain “solvent”, and that has also happened in the recent past.
I have wittnessed “devaluation” and “austerity” events in my lifetime, but last sovereign default for Greece happened in 1948, after the horrible WWII and civil war tragedies. It’s a totally different situation today.
As the outcome of the goverment austerity measures is uncertain, I wish to hear from you ideas and suggestions for personal preparation for a sovereign default scenario.
Thanks in advance
I almost hate to post this because it so hard to say what will happen to Greece or what degree the damage will be. But I think its best to learn from those who have experienced an economic collapse in their own countries. Perhaps Greece won’t suffer this badly but here is an account from someone who did and who is still experiencing the collapse in Argentina. There are some practical lessons to be learned here.