Greece is at the critical crossroad on its euro-zone membership. In a piece titled "Europe on a Tightrope," BlackRock (BLK) says upcoming Greek elections June 17 set the country up for a game of chicken with European paymasters if populist anti-austerity parties win the day. "Germany, the ECB and other key stakeholders...are likely to cut off funding if Athens tears up the agreement," prompting a Greek default, firm says. Notes Grexit is not a given. One possible outcome, could be the Greek government issuing California-style IOUs used for payment of civil servants, services and taxes. "This parallel currency would likely lead to hoarding of euros and trigger a greater economic collapse than the disaster already in motion," BlackRock says.
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