In this article, Joshua Brown argues that the impacts of Greek default are likely to be small. He correctly points out that Greece’s economy is really pretty small in the scheme of things.
But does that really mean that the impact of a default is really small? I think most of the time it would, but today’s world economy appears to be fragile. It’s possible that a Greek default could disturb a fragile equilibrium, which could lead to unknowable and potentially huge consequences. Best to handle the situation carefully.