On Friday, German magazine Der Spiegel dropped a bomb on the global financial markets with a story headline: "Greece considers exit from Euro Zone."
Immediately, the Euro versus the US dollar fell 100 points as the markets assessed the damage that could be wrought by this action.
According the article, German Finance Minister Wolfgang Schäuble staff prepared a paper detailing what would happen if it Greek pulled out.
Here's what Der Spiegel reported:
"It would lead to a considerable devaluation of the domestic currency against the euro," the paper states. According to German Finance Ministry estimates, the currency could lose as much as 50 percent of its value, leading to a drastic increase in Greek national debt. Schäuble's staff has calculated that Greece's national deficit would rise to 200 percent of gross domestic product after such a devaluation. "A debt restructuring would be inevitable," his experts warn in the paper. In other words: Greece would go bankrupt."