The Greek Tragedy

Over the past 3 weeks, the so called Greek tragedy and possible debt default has seen freefall in equities, the eurusd making a trend move down etc. There are also doomsday prediction that Portugal and Spain may default as well.

To me Greece's 2.5% of GDP debt is not significant, though if Spain/Portugal/Italy go down the same road then there is disaster looming. But wait. That is only IF they default, it hasn't happened yet. In addition I draw attention to the Asian Financial Crisis, where Russia defaulted on their bonds, LTCM went under, the US authorities rescued them and you know what till today Russia is still around!