May 232012
 

There are reports that share prices in world markets fell dramatically on the announcement that Europe has asked countries to prepare contingency plans in the event of Greece dropping the Euro. Which probably shows that there are some pretty dumb share dealers around.

That is not to say there are not valid concerns about the possibility of Greece reverting to the old drachma but that is hardly news – I knew about the chances of that happening this morning well before the announcement. Perhaps some intellectually-challenged people believe that preparing contingency plans increases the risk of something happening.

Of course preparing contingency plans does not increase the risk of anything (except possibly a shortage of paper). An event will occur with or without a contingency plan which is after all a way of preparing for an event if it occurs.

In fact it is probable that such contingency plans already exist for Greece leaving … or indeed any other country. In fact they bloody well should do – those whose job it is to draw up contingency plans would be grossly irresponsible if they have not drawn up plans by now. To draw a parallel with the computing world, the person who waits until their disk drives all start making strange and worrying sounds before starting to perform backups is doing so far too late.

 

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