Greece-One Last Thought

This thought crossed my mind just after I hit the send button on my previous screed on Greece.  I think that Greece has long been a known event and so I think its creditors have long had plans for what could occur in the event of default and or exit from the Euro.  But that scenario is worst case and because it is markets will worry about unintended consequences until the dust settles.  That means that markets and investors will be rife with rumor and uncertainty, the two things markets hate the most.  While I think the most likely scenario is that markets settle down once everybody realizes that the world hasn't ended, we do need to entertain the possibility that markets use the opportunity to sell off.  Greece could be seen by some investors as a good reason to do  a bit of profit-taking or a good excuse to reallocate assets.  

Timing would also be right in terms of seasonality.  This could be a higher probability if we have a few weeks of "this bank or that financial institution" rumors, that is whispers that make their rounds about some institution with more exposure to Greek default than anybody knew.  Again I don't think this is the most likely scenario, especially since it didn't pop up in my head when I was originally writing about Greece.  Still, can't excluded the possibility.  As I said earlier....stay tuned!